Solana’s (SOL) worth is ready for an enormous upside rally after dealing with vital promoting strain at its sturdy resistance stage of $161. Previously few days, SOL has dropped by over 18% as a result of total bearish market sentiment and the current worth decline in Bitcoin (BTC).
Pattern Reversal Signal
Nevertheless, SOL’s every day chart has fashioned a bullish divergence, signaling a possible pattern reversal from a downtrend to an uptrend. Because the starting of August 2024, SOL has been forming decrease lows, whereas the Relative Energy Index (RSI) has been creating larger lows.
The formation of bullish divergence on a every day timeframe signifies a possible upside rally. Merchants and buyers view this as an excellent shopping for alternative.
Solana Worth Prediction
In response to the skilled technical evaluation, SOL has been consolidating inside a decent vary close to a vital assist stage of $127. This assist stage has at all times been particular for Solana. Since March 2024, SOL has revisited this stage a number of instances, and every time it has seen an enormous upside rally of a minimal of 20%.
Nevertheless, given the bullish divergence and historic worth momentum, there’s a robust risk that SOL might soar by 20% to the $161 stage.
On-chain Metrics and Market Sentiment
As of now, the key liquidation ranges are close to $126.5 on the decrease facet and $136.8 on the higher facet, as merchants are over-leveraged at these ranges, in response to the on-chain analytic agency Coinglass.
If the market sentiment for SOL stays bullish and the worth rises to $136.8 stage, almost $41 million price of quick positions will probably be liquidated. Conversely, if the sentiment shifts and the worth falls beneath the $126.5 stage, roughly $115 million price of lengthy positions will probably be liquidated.
The upper lengthy liquidation exhibits that presently bulls are dominating the asset and have the potential to liquidate bigger quick positions.
At press time, SOL is buying and selling close to $134 and has skilled a worth surge of over 3% within the final 24 hours. In the meantime, its buying and selling quantity has additionally skyrocketed by 65% throughout the identical interval, indicating larger participation amid a bullish outlook.
