The popular altcoin Solana has demonstrated four consecutive green daily candles, increasing its price by over 11% since May 19.
Currently trading above $180, the altcoin has risen 3% in the last 24 hours and seems poised to continue its upward movement in the short term.
SOL Expects Further Growth as the Futures Market Shows Optimism
The long/short ratio of SOL has risen above 1 for the first time since May 8. This signals a revival of interest in long positions among futures traders and highlights a shift in market sentiment towards bullish expectations. At the time of publication, this metric stands at 1.01. The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is below one, asset holders are betting on a price decline rather than an increase.
Conversely, as in the case of SOL, a long/short ratio above one indicates more long positions than short ones. This indicates a bullish sentiment as most traders expect the asset's value to increase.
The upward trend in the long/short ratio of SOL reflects rising optimism among its futures traders. This shift indicates that more market participants are now betting on the token's growth, expecting an increase in its price in the short term.
Additionally, the Aroon Up line of the token is at 100%, highlighting the strength of the current SOL rally. The Aroon indicator measures the strength and direction of a trend by tracking the time since the highest and lowest prices over a certain period. It consists of two lines: Aroon Up, which measures bullish momentum, and Aroon Down, which tracks bearish pressure. When the Aroon Up line reaches 100 or is close to it, it means that the asset has recently set a new high. This applies to SOL, which is trading at a nine-day high of $185.32 at the time of publication.
This confirms the upward momentum and hints at a dominant bullish trend, indicating the likelihood of continued price growth.
SOL Gains Strength Amid Growing Money Flow
Solana buyers are contributing to this positive momentum, and the rising Chaikin Money Flow (CMF) reflects steady accumulation of tokens among spot market participants. This momentum indicator currently stands at 0.26 and is in an upward trend, signaling increasing demand for SOL.
The CMF indicator measures how money flows into and out of an asset. A positive value like this indicates that buying pressure exceeds selling pressure. This trend confirms the accumulation of SOL and hints at the likelihood of a sustained upward price momentum.
In this case, Solana buyers may push the token's value above $185 to trade at $188.83. A successful breakout of this resistance could drive the altcoin to $195.55. However, if bears regain control of the market, they could cause the price to fall to $171.88.#BinanceSquare #Write2Earn #Squar2earn #Binance #solana $SOL