- Solana has a strongly bullish market structure and $200 was very likely.
- There is one factor that needs to change before SOL can start a rally.
Solana [SOL] recently saw an increase in network activity and trading volume, surpassing even Ethereum’s [ETH] in a 24 hour window.
The number of active wallets on Solana has increased, while Ethereum’s active wallets have decreased over the past week.
On the price chart, Solana has a strongly bullish market structure. The Solana price forecast indicates that $200 is an easy target, but how high can the next rally go?
Exploring the Fibonacci Extension Levels
Source: SOL/USDT on TradingView
The range formation (purple) was broken on May 16. This breakout saw Solana prices rise to $188.9 before retreating to retest the $160 zone as support.
The Fibonacci retracement levels (light yellow) showed how bullish the Solana price forecast is.
Trading volume has decreased over the past two weeks due to the retracement. Volume will need to rise dramatically to reinforce bullish expectations.
On the higher futures, as the 78.6% Fib retracement level at $122 was defended and the structure was reversed bullishly, the next target is $210.
Additionally, the $236 and $279 levels can also be used as take-profit levels. The RSI on the 1-day chart has remained above neutral 50 for the past three weeks, supporting the idea of consistent bullish momentum.
Short-term sentiment was intensely bullish
On June 2, Open Interest rose from $2.1 billion to $2.2 billion, while SOL prices fell from $168 to $162. This revealed bearish sentiment and short selling. This trend reversed on June 4.
Read Solana’s [SOL] Price forecast 2024-25
Over the past 24 hours, both OI and price have been on an upward trend, showing bullish sentiment. The spot CVD also reversed its downward trend, indicating demand in the spot markets.
The move above the $170 resistance also liquidated short positions, fueling further gains.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.