Key Insights:
- Solana faced key resistance at $149, with a breakout likely targeting $160 and beyond.
- Solana (SOL) open interest rises 4.9% to $5.81B, signaling strong market interest.
- RSI crossed 14-day SMA, supporting potential for further upside.
At press time, Solana price was at a critical resistance level that may lead to an upward or downward movement. SOL was trading above key technical levels and eyeing the $155 mark.
This level has served as a descending trendline, repeatedly rejecting bullish breakout attempts in recent weeks. A clear breakout above this level may open the way to $160. Also, the $200 price level is consistent with the general market trends.
Solana Price Faced Key Resistance at $149
Crypto analyst Mr. White observed that the Solana price rebounded from the $141.50 support level over the past week. The cryptocurrency continued its rally and broke the $149 resistance zone.
This level, shown on the two-hour chart with a descending trendline, has often restrained the rise. This indicated the presence of intense pressure for the sell position.
After surpassing the $149 mark, the top altcoin showed strong bullish momentum. This breakout signaled a rally, pushing the SOL price to $160.
A breakout above this level would confirm a shift from bearish to bullish momentum. It could push the Solana price toward $200, aligning with the 61.80% Fibonacci level. To achieve this, sustained and aggressive buying would be necessary. A rising trading volume is also crucial to counter the ongoing selling pressure.
Solana Open Interest Rose Signaling Strong Market Interest
According to data obtained from Coinglass, SOL open interest increased by 6.01% to $5.95 Billion. The rise in open interest signals growing trader activity in Solana. More investors are taking long or short positions as they anticipate a breakout.
Open interest generally rises when there is a lot of trading activity within the market. It usually precedes large price movements. The increase in open interest suggests a rise in market leverage.
As a result, both gains and losses have been magnified based on price direction. Market sentiment is shifting, with traders turning more bullish on Solana. This optimism has grown, especially after the Solana price broke past the $160 resistance level.
Binance Traders’ Long Positions Dominance
Based on Binance data, 63% of all open interest in SOL derivatives is in longs. This suggested a dominant bullish sentiment. This long-to-short ratio indicates the sentiment in the Solana market as traders gear up for more upside in Solana price.
Moreover, this is important as breakouts are usually preceded by bullish engagements. This implied that many traders await a break above the current resistance levels.
The rise in long positions aligns with the broader market recovery. This growth follows recent macroeconomic shifts that have boosted investor confidence in cryptocurrencies.
One of them being the recent decision by the FOMC to keep interest rates unchanged at between 4.25%-4.50%
Solana RSI Supports Potential for Further Upside
Technical indicators also point to a potential bullish breakout. Solana’s RSI has exceeded its 14-day SMA, signaling potential bullish momentum.
This crossover is often seen as an indicator of increased buying interest in the market. This crossover typically indicates a shift in market sentiment, supporting the possibility of further price gains.
Further, the RSI is above the 50-level, indicating that bullish momentum is still present. The rising open interest and a strong long-to-short ratio suggest growing bullish momentum. This setup means the Solana price may soon be primed for a significant breakout.
SOL has not given up hope for a $200 rally, surging over 9% in the last 24 hours to trade at $160.03. The bullish momentum is supported by a spike in trading volume that leaped 74%, meaning increasing investor confidence.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
