- With the recent correction, SOL retested the breakout level of the double bottom pattern and headed towards $165.
- Although on-chain metrics are combined with technical analysis, it appears that bulls dominate the SOL.
After a significant price correction, the overall cryptocurrency market has started to rise. In the middle of all this, the world’s fifth largest cryptocurrency, Solana [SOL] appears bullish and poised for a notable upward rally.
Solana technical analysis and key levels
According to AMBCrypto’s technical analysis, SOL successfully retested the breakout level of the bullish double bottom price action pattern and was heading towards the $165 level.
Source: TradingView
Furthermore, on a daily time frame, SOL appears to be completing its bullish inverse head-and-shoulders price action pattern. However, this bullish pattern will only be completed once SOL reaches the $165 level.
As of now, there is a high possibility that SOL could easily reach the USD 165 level. Meanwhile, another bullish pattern signals a massive upside rally once it breaks the neckline of the inverse head and shoulders pattern at the $165 level.
If this speculation turns out favorably, SOL could potentially reach the $185 level in the coming days. Nevertheless, sentiment among traders remains bullish. Nevertheless, sentiment among traders remains bullish.
Bullish statistics in the chain
SOL’s positive outlook is further supported by an analytics company in the chain. According to Coinglass, SOL’s Long/Short ratio over a four-hour timeframe currently stands at 1.089, indicating strong bullish sentiment among traders.
Moreover, open interest is up 2.9% over the past four hours and has been rising steadily. This growing open interest suggests traders are placing more orders as SOL successfully retests the recent breakout level.
In the crypto industry, traders and investors often view rising open interest and a long/short ratio above 1 as bullish signals and use this data to build long positions.
High liquidation levels
Currently, the key liquidation levels are at $149.5 on the downside and $154.6 on the upside, with traders at these levels being over-leveraged, according to the Coinglass data.
Source: Coinglass
If sentiment remains unchanged and the price rises to the $154.6 level, nearly $15.67 million worth of short positions will be liquidated.
Conversely, if sentiment changes and SOL’s price falls to the $149.5 level, long positions worth approximately $33.28 million will be liquidated.
Combining these on-chain metrics with technical analysis, it appears that bulls are currently dominating the SOL and may continue to support the upward rally.
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At the time of writing, SOL was trading around $153.8 and has experienced a price increase of over 1.1% in the past 24 hours. During the same period, trading volume fell by 12%, indicating lower trader participation.
However, the volume increases steadily after the successful retest.