Solana (SOL) could drive SOL up by 10%, reaching the significant level of $265.
On Binance, 82.17% of top Solana (SOL) traders hold long positions, while 17.83% hold short positions.
SOL has broken through a two-week downtrend line and is currently heading towards its all-time high.
Solana (SOL) is the fifth-largest cryptocurrency by market capitalization in the world, poised for upward momentum as it forms a bullish price trend pattern on the four-hour timeframe. Earlier, SOL broke out of a bearish head-and-shoulders pattern, resulting in a price reversal post-breakout, trapping short sellers.
Solana (SOL) Technical Analysis and Upcoming Levels
Today, December 5, 2024, SOL has broken through a two-week downtrend line and is currently heading towards its all-time high. With a strong bullish breakout and a four-hour candle closing above the resistance level of $240, this breakout could drive SOL up by 10%, reaching the significant level of $265 within the next day.
On the positive side, the altcoin is trading above the 200 Exponential Moving Average (EMA) on the four-hour timeframe, indicating an upward trend. Meanwhile, SOL's Relative Strength Index (RSI) is currently at 55, below the overbought territory, suggesting that the asset has enough room to rise.
RSI is a technical indicator that traders and investors use to determine whether an asset is in the oversold or overbought territory and to make informed decisions accordingly.
On-chain indicators are bullish
With positive technical analysis, on-chain indicators further support SOL's bullish outlook. The long/short ratio for Binance SOLUSDT is currently at 4.61, indicating strong bullish sentiment among traders.
As of the time of writing, 82.17% of top traders on Binance hold long positions, while 17.83% hold short positions.
According to Coinglass's open contracts data, in addition to Binance's significant long positions in the past 24 hours, traders' interest and confidence in SOL have remained stable.
In the past 24 hours, SOL's Open Interest (OI) has moderately increased by over 1.2%, indicating that traders are slightly interested in the potential breakout. Given the recent price movements, this OI value is likely to rise in the coming hours.
Solana (SOL) Price Analysis
Currently, SOL's trading price is close to $240, with a price increase of more than 3.5% in the past 24 hours. During the same period, its trading volume has increased by 8.5%, indicating that traders and investors are not very interested in the recent breakout.