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- Solana’s bullish pennant pattern indicated that SOL could reach the $299 level after the breakout.
- Traders were over-indebted: $251.2 at the low end and $264.1 at the high end.
Solana [SOL]The world’s fourth-largest cryptocurrency by market capitalization is poised for a notable upside rally as it forms a bullish price action pattern.
In recent days, SOL, among the major cryptocurrencies, reached its all-time high (ATH). However, the price now appears to be consolidating around that level.
This price consolidation near the ATH indicated a possible preparation for a further upward rally.
At the time of writing, SOL was receiving support from its bullish price action, current market sentiment, and increased participation from both traders and investors.
Solana Price Action and Key Level
According to AMBCrypto’s technical analysis, SOL has formed a bullish pennant pattern over a four-hour time frame and is currently on the verge of a breakout.
Based on recent price action and historical price momentum, this bullish pattern has emerged near a strong resistance level at USD 260.
Source: TradingView
If SOL breaks this bullish pennant pattern, surpasses resistance and closes a four-hour candle above the $260 level, there is a good chance that the price will rise 15% to reach $299 in the coming days.
As of now, the asset was trading above the 200 Exponential Moving Average (EMA), indicating an uptrend. Traders and investors often rely on this indicator before building positions.
Moreover, the Relative Strength Index (RSI) stood at 57.10, indicating that SOL still has room to rise in the coming days.
Mixed sentiment from on-chain metrics
In addition to technical analysis, on-chain metrics suggest mixed sentiment among traders.
According to on-chain analytics firm Coinglass, SOL’s Open Interest has fallen 3.5%, indicating that traders have either exited their positions or faced liquidations during the price correction.
However, a breakout from the current price action pattern could attract investors and traders alike.
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Right now, the key liquidation levels are at $251.2 on the downside and $264.1 on the upside, according to Coinglass’ stock liquidation chart.
This data indicates that traders at these levels have high leverage. A breakout or breakdown of these levels could provide a safer entry point for traders.
Source: Coinglass
