Solana (SOL) has risen by 2% in the last 24 hours, taking advantage of the overall market optimism ahead of the upcoming FOMC meeting. The level-1 (L1) token is currently trading at $147.83.
On-chain data indicates an increase in demand for long positions, suggesting that more traders are preparing for a price increase.
Solana futures show strength ahead of the FOMC meeting
A slight increase in trading activity in the crypto market over the past 24 hours has pushed the price of SOL up by 2%. This modest increase reflects growing optimism among investors as markets prepare for today's FOMC meeting.
SOL futures traders have expressed optimism, increasing demand for long positions. According to Coinglass, the long-to-short ratio for the token reached a monthly high of 1.04, indicating a preference for long positions among futures market participants. The long-to-short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When its value is below one, more traders are betting on a decline in the asset's price than on its increase.
Conversely, as with SOL, a ratio above one indicates more long positions than short ones. This suggests a bullish sentiment as the majority of SOL futures traders expect an increase in its value.
Additionally, the rising relative strength index (RSI) of SOL on the daily chart confirms increased demand for the altcoin. At the time of publication, this momentum indicator stands at 57.54. The RSI indicator measures the overbought and oversold conditions of an asset in the market, ranging from 0 to 100. Values above 70 typically signal overbought conditions for the asset, while an RSI below 30 indicates oversold conditions.
The current RSI value of SOL signals increasing bullish momentum and leaves room for further growth before entering overbought territory.
The price of SOL is balancing on the Support Line
At the time of writing, SOL is trading at $147.69, bouncing off support at $142.59. If demand increases and market conditions remain favorable after the FOMC meeting, SOL may continue its ascent and rise to $171.88, which is the peak reached on March 3. However, if the upcoming FOMC meeting triggers a resurgence of bearish pressure, SOL may face a new wave of selling. In that case, the token could break the support level at $142.59, opening the way for a deeper decline to $120.81.#fomc #solana #Binance #BinanceSquare #Write2Earn $SOL