The trading sentiment of retail and large institutional investors is highly aligned, with futures activity supporting positive price expectations.
The liquidation of short positions and stable funding rates indicate a prolonged upward trend without causing excessive leverage.
The positive trend of retail investors and large institutions towards Solana [SOL]
The price of Solana is currently around 145 USD, recording a synchronous increase in market sentiment from both the community and large institutions. The Market Prophit sentiment index for smart investors reached 1.79, while community sentiment remains slightly positive.
Furthermore, the 90-day Futures Taker CVD index shows a 'Buyers Dominant' signal, indicating steady buying pressure in the market.
This consensus among market participants strengthens the strength of the mainstream capital demand, even though prices remain constrained within a narrow range.
Can the confidence of retailers drive growth momentum?
Data from Binance shows that 74.83% of traders are holding long positions, while only 25.17% are holding short positions. The Long/Short ratio stands at 2.97, reflecting a strong bullish trend in the retail investor community.
This strong bullish sentiment indicates that the market may be preparing for a positive reversal.
However, a significant imbalance could pose a risk if prices cannot successfully break new highs, as overly bullish positions could lead to rapid liquidations if market sentiment suddenly reverses.
Source: Coinglass
Funding costs are rising steadily without leverage spikes.
In the perpetual SOL/USDT trading on Binance, the recent funding rate has maintained at 0.001%, indicating that long position holders have to pay a small fee to maintain their positions.
This reflects moderate market gains, somewhat showing that traders are not using excessive leverage, keeping risks under control.
Thus, a cautious sentiment still dominates the market, with the current structure stable enough to support a gradual breakout rather than a sudden price surge.
Source: Santiment
Opportunities from forced liquidations?
Liquidation data shows a clear trend towards short positions, with a total short liquidation value reaching 192K USD on June 20, compared to 1.21 million USD for long positions.
Of which, Binance recorded 68K USD in short liquidations, while OKX recorded 102K USD. This result indicates that short sellers are frequently 'caught', contributing to the upward momentum through forced liquidation spikes.
This trend is expected to continue if prices keep rising, thereby reinforcing the tightening effect and boosting the recovery potential of SOL.
Source: Coinglass
Does SOL price have the potential to break out in the near future?
Currently, Solana is fluctuating between 140 USD and 152 USD, close to the average level of Bollinger Bands at 152.01 USD. The MACD index is gradually decreasing to -3.26, indicating that the downward pressure is easing.
The price being close to the lower Bollinger Bands and the bands narrowing is a signal of reduced volatility, often indicating an imminent breakout.
To confirm the upward trend, SOL needs to break above the 20-SMA average and turn it into a key support level. Until then, the market is still waiting for a clear direction.
Source: Trading View
The market sentiment for Solana shows positive coordination between retail investors and large institutions. The market structure remains stable, with no signs of excessive leverage or overly emotional trading. However, a real breakout will depend on SOL's ability to regain key technical levels like the Bollinger Bands average.
Until then, the momentum remains latent, but the foundation for a positive bullish trend is clearly ready.
Source: https://tintucbitcoin.com/dan-ban-khong-solana-sol-sap-but-pha/
Thank you for reading this article!
Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
