The cryptocurrency market is facing sustained selling pressure, leading to a shift in overall sentiment towards a downtrend.
However, Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is beating the trend as it gains attention from investors.
Despite the bearish environment in the crypto market, SOL prices jumped 5% over the last 24 hours.
This stability has piqued the interest of traders, who are closely monitoring its performance against major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
As Solana maintains its upward momentum, it stands out as a potential leader in the ongoing market dynamics.
Solana price movement
In a surprising twist, Solana has outpaced other major cryptocurrencies, including Bitcoin, Ethereum, and Binance Coin (BNB).
At the time of writing, SOL is trading at $173.5, marking a 5% increase in the past 24 hours.
This rise is notable against the backdrop of a 20% decline in trading volume, which suggests heightened caution among traders.
Source: CoinmarketCap
The dip in trading volume reflects broader market concerns, as investors remain wary amid uncertain market conditions.
Yet, Solana’s price action indicates strength, positioning it as a cryptocurrency to watch in the coming days.
From a technical standpoint, Solana’s recent price movements suggest a bullish outlook.
The cryptocurrency recently broke out of a tight consolidation range between $162 and $173.5, which had held for two days.
This breakout has set the stage for a potential 10% increase, with the next target being the $190 level.
SOL’s price remains above the 200 Exponential Moving Average (EMA) on the daily chart, which is considered a key indicator of an uptrend.
This trendline support suggests that SOL could continue to attract buying interest, especially if broader market conditions stabilize.
Short sellers retreat
The breakout in Solana’s price has triggered a wave of liquidations among short sellers.
Data shows that nearly $3.5 million worth of short positions have been liquidated, compared to $350,000 in bullish liquidations.
This disparity indicates that bearish sentiment is waning, with short sellers stepping back amid rising prices.
The liquidation of short positions often serves as a bullish signal, as it can prompt further price gains.
With the bears losing steam, Solana’s upward momentum may find further support in the coming trading sessions.
Bullish on-chain metrics support Solana’s rally
Solana’s bullish trend is further reinforced by favorable on-chain metrics.
Analysis from CoinGlass, an on-chain analytics platform, reveals that SOL’s Long/Short ratio currently stands at 1.02.
This ratio signals a predominance of long positions over short ones, indicating a positive market sentiment among traders.
Open interest for SOL has surged by 11%, reflecting a buildup of new positions following the recent price consolidation.
Traders often view rising open interest alongside a Long/Short ratio above 1 as a sign of growing confidence in the asset, which could drive further price appreciation.
With bullish technical and on-chain indicators aligning, Solana appears poised for further gains in the near term.
The cryptocurrency’s ability to hold above key support levels and attract new long positions could provide a foundation for a continued upward trend.
Broader market conditions and the overall direction of the cryptocurrency market will likely influence Solana’s trajectory.
As investors remain cautious amid the market downturn, SOL’s resilience could make it a compelling choice for those seeking opportunities during the current volatility.
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