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- After the confirmation of the breakout, Solana could potentially rise 25% to reach the USD 260 level.
- SOL’s Open Interest has been rising aggressively, indicating greater trader participation.
The overall cryptocurrency market appeared to undergo a price correction over the past 24 hours.
In the midst of this, Solana [SOL]the fourth largest cryptocurrency, has successfully retested its breakout level, and there is a high chance of upward momentum in the coming days.
The possible reasons behind this bullish speculation are positive price action, bullish on-chain metrics, and increased participation from traders and whales.
Technical analysis of Solana
Solana’s price was at a crucial support level at $200 at the time of writing. Based on the recent price action and historical momentum, there is a high probability that the asset could rise 25% to reach the $260 level soon.
Source: TradingView
At the time of writing, SOL was trading above the 200 Exponential Moving Average (EMA) on the daily time frame.
Meanwhile, the Relative Strength Index (RSI) indicated a potential upside rally, with the value close to oversold territory.
Bullish statistics in the chain
In addition to SOL’s positive outlook, on-chain metrics further support the asset’s bullish behavior. According to the on-chain analytics company Mint glassSOL’s Open Interest has seen an aggressive increase.
Source: Coinglass
Open Interest (OI) has risen 3.5% in the last few hours, and 5.2% in the last four hours. This indicated notable trader participation in the asset as it is poised for upward momentum.
High liquidation levels
At the time of writing, key liquidation levels were at $199.5 on the downside and $210.8 on the upside, with traders over-indebted at these points, according to Coinglass data.
If sentiment remains unchanged and the price rises to $210.8, nearly $52.7 million in short positions will be liquidated.
Read Solana’s [SOL] Price forecast 2024–2025
Conversely, if sentiment changes and the price falls to $199.5, approximately $110 million in long positions will be liquidated.
So it appears that bulls are currently dominating the asset and could support it in the upcoming rally in the coming days.