Solana (SOL) has attracted renewed attention from major investors as vladilena.eth opened a leveraged position worth $12.65 million, coinciding with a breakout from a significant technical structure. This trader deposited $4 million USDC into Hyperliquid (HYPE) and executed a Long trade with 10x leverage at a price of $153.79.
This trade not only reflects investor optimism but also reinforces the bullish narrative forming around SOL. With liquidation set at $106, this position shows strong confidence in continued upward movement and provides momentum for a potential breakout.
Is SOL's breakout from the cup and handle pattern for real?
At the time of writing, SOL has surpassed the handle of a cup structure and the handle is clearly formed, often regarded as a bullish continuation signal. Breaking the neckline at $155.76 paves the way for a potential rally towards the next resistance level at $184.82. The smooth curvature of the cup and decreasing volume during the handle phase fully aligns with bullish criteria according to theory.
If buyers maintain pressure and continue, this pattern could mark the beginning of a significant price movement. Therefore, traders are closely monitoring this area, as confirmation could stimulate new positions from sidelined participants.
Which direction are derivative traders leaning towards: Will long positions drive the next bullish wave?
Derivatives data from Binance shows that 61.72% of accounts still hold Long positions on SOL perpetual contracts, while only 38.28% hold Short positions at the time of writing. This disparity reflects increasing confidence among market participants.
With the Long/Short ratio standing at 1.61, such imbalances often lead to volatility as crowded trades become vulnerable. Thus, while sentiment leans towards buyers, any strong correction could trigger a cascade of Long position liquidations.
However, if momentum holds, these Long positions could provide the necessary fuel for SOL to reclaim previous highs.
Why has volume not supported Solana's bullish structure?
Although SOL has broken out and Long positions are increasing, the spot volume bubble map indicates a decline in trading activity. This mismatch between price movement and volume raises doubts about the strength of the bullish rally.
Strong breakouts typically accompany high volume, but current indicators show hesitance. This could be a brief pause before volume returns—or an early sign of diminishing buying interest.
Traders should monitor volume spikes near resistance levels to confirm the momentum of the bullish move.
Will the liquidation clusters at $153 and $159 determine Solana's short-term path?
Binance's liquidation heatmap shows dense clusters around $153 and $159, marking important levels of leverage interest. A clear move above $159 could trigger successive short liquidations, creating upward pressure. Conversely, a drop below $153 could wipe out excessive long positions, reversing recent gains.
Therefore, SOL's behavior around these thresholds could determine its short-term trend. With the concentration of liquidity, these areas act as battlegrounds where bulls and bears are actively testing their conviction.
Can SOL build on the confidence of whales and trigger a larger movement?
Solana's technical structure, increasing interest from whales, and the bullish stance of derivatives instruments all indicate potential bullish upside. However, weak trading volume and critical liquidation levels could create volatility.
A sustained move above $159 with increased volume could validate the bullish hypothesis. Until then, the market may remain volatile and react around these leverage zones.