The market is experiencing a comeback in investor interest, as evidenced by Ethereum crossing the critical $2,000 level and Bitcoin testing $38,000. At the same time, Solana has shown a significant price increase after 1.5 years by crossing the USD 50 resistance level. This has led to increasing concerns about a possible price correction in the coming hours.
Solana’s Short-Term Buyers Left: Bullish Signal
The liquidation chart showed a remarkable trend after the price of SOL crossed $45. Remarkably, more than $17 million in short positions were liquidated. At the same time, holders of short-term positions took advantage of the price increase to sell their interests profitably. Coinglass data showed that long positions were not immune to liquidations either; during the price surge, long positions worth more than $11.5 million were liquidated in one day.
The exit of short-term position holders during the Solana (SOL) price surge is a bullish signal for the altcoin. It indicates that these traders are taking profits in a controlled manner without affecting the ongoing uptrend.
Furthermore, with these short-term holders already out of the market, there is less chance of a sudden increase in selling activity if SOL encounters resistance at higher levels. This could discourage the opening of new short positions by sellers, as there is less anticipation of a large price drop due to the lack of immediate selling pressure from long position holders. Therefore, this behavior contributes to a more stable upward movement of the price of SOL.
Current market sentiment is trending toward bearishness, as indicated by the declining long/short ratio, currently at 0.9298. This shows a dominance of short positions, which make up 52% of the market. Nevertheless, bulls remain strong with 48% of positions.
What’s next for the SOL Prize?
Over the past few hours, Solana has seen a notable upward price trend. It recently reached a high of $52 but failed to rise further due to selling pressure from bears. The SOL price is expected to consolidate within that region in the coming hours. At the time of writing, SOL price is trading at $50.5, up over 11% in the last 24 hours.
Bulls are experiencing a slight pullback as SOL price struggles to stay above $50; however, buyer interest continues to increase as evidenced by the repeated attempts at a breakout. This buying activity suggests that investors are optimistic about overcoming the next resistance level at $59. If this happens, SOL price could see another rise and consolidate around $68-$80.
On the bearish side, the bears are aiming for a decline below the EMA20. A price drop below the $40-$45 zone will trigger strong selling, and SOL price could reaffirm the $30 level. However, this level will likely be accompanied by strong buying demand, creating recovery opportunities.