- SOL is up 9.11% over the past month.
- Solana has turned 200 EMA on daily and 4-hour time frames, signaling a possible rebound.
Since hitting a local high of $193, Solana [SOL] has failed to maintain upward momentum and regain higher levels. As such, the altcoin remains stuck in a consolidation range between $140 and $160.
This shows that since falling below $160, the bears have outpaced the bulls to keep prices within this range.
In fact, at the time of writing, SOL was trading at $146. This marked a 9.11% on the monthly charts, with the altcoin also making moderate gains on the weekly and daily charts.
Despite the recent gains, the SOL remains 43.9% below the ATH of $259 recorded in 2021.
Although SOL has struggled to break above $160, the recent price action is creating optimism, prompting analysts to speak. One of them is Coin signals who have suggested a possible increase citing 200 EMA.
Solana flips 200 EMA
In their analysis, Coin Signals stated that SOL has reversed 200 EMA on daily and 4-hour time frames. This price movement means that the altcoin has broken out of the symmetrical triangle.
Source:
What this means is that a breakout above the upper trendline signals the start of an uptrend. Therefore, the altcoin is well positioned to see further gains on price charts.
What SOL’s graphs suggest
Solana’s Long/Short Ratio on a four-hour timeframe stood at 1.2 at the time of writing, indicating that long position holders were taking over the market. That’s why more and more traders are betting on a rise in prices, rather than a fall.
Source: Coinglass
This demand for long positions was further supported last week by a positive DyDx Exchange Funding Rate. This suggests that longs pay a premium to shorts during market downturns to maintain their positions.
Such market behavior also indicates that investors have confidence in the altcoin’s future profits.
Source: Santiment
Finally, Solana’s open interest in USD per Exchange has increased over the past week. Open Interest has risen from a low of $649 million to $712 million.
This shows that investors were constantly opening new positions in anticipation of further gains.
Source: Santiment
Read Solana’s [SOL] Price forecast 2024–2025
Simply put, while SOL has struggled to regain levels above $140 and $160, the altcoin is showing increased positive market sentiment.
As such, current conditions could provide Solana with further gains. Therefore, a break above the USD 160 resistance will see the altcoin reach USD 170.
