The popular altcoin Solana (SOL) gained strong bullish momentum last week, rising 15% amid renewed market optimism.
With more positive sentiment in the crypto market, two important signals on the blockchain suggest that this bullish trend may continue, potentially bringing Solana to the price level of $190.
Solana investors are making big bets on bullish momentum.
Firstly, data on the blockchain shows a significant drop in SOL's Liveliness over the last 14 days. This indicator, which monitors the movement of previously inactive tokens, fell to 0.764 yesterday, indicating a reduction in Solana sales among its long-term investors.
SOL Liveliness. Source: Glassnode
Liveliness measures the movement of long-term held tokens, calculating the ratio of destroyed coin days to the total accumulated coin days. When it rises, it suggests that more inactive tokens are being moved or sold, signaling profit-taking by long-term investors.
Conversely, when Liveliness falls, long-term investors hold a large portion of tokens inactive, reflecting greater accumulation and confidence in the asset's future.
This trend demonstrates strong conviction among major Solana investors. If it continues, it may set the stage for a prolonged bullish run as overall market sentiment continues to improve.
Additionally, buying pressure is significant in the SOL derivatives market, reflected by the current long/short ratio of the coin at 1.01.
SOL Long/Short Ratio. Source: Coinglass
The long/short indicator measures the ratio of long bets to short bets in the futures market of an asset. A ratio above one signals more long positions than short ones. This indicates bullish sentiment, as most traders expect the asset's value to rise.
On the other hand, a long/short ratio below one means that more traders are betting on the asset's price decline than those expecting it to rise.
The long/short ratio of Solana reflects the growing demand for long positions. Its traders continue to position themselves to benefit from the ongoing upward movement, which may strengthen the coin.
Solana approaches the critical level of $190, but profit-taking risks loom.
On the daily chart, Solana is trading above an upward trend line, a trend that emerges when the price of an asset is generally increasing over time, with buyers being more dominant than sellers.
If this continues, Solana could decisively break above the $190 mark and rise towards $195.55, a value it last reached on July 28.
Solana Price Analysis. Source: TradingView
However, a resurgence in profit-taking activity could invalidate this bullish outlook. If sellers return to the market, they could drive Solana's price below the upward trend line and towards $171.88.
The article Why Solana (SOL) Could Soon Exceed $190 was first seen on BeInCrypto Brazil.
