Solana (SOL) has recently experienced a notable price decline in the cryptocurrency market. However, despite this setback, the asset is now showing signs of a bullish reversal on the daily time frame. SOL, a top cryptocurrency known for its advanced technology and increasing adoption, recently hit a record high before facing a bearish market sentiment.
The current technical analysis of SOL indicates a bullish divergence on the daily chart. This rare occurrence suggests that the asset is primed for a significant upside rally. A bullish divergence occurs when the price of an asset makes a lower low while the Relative Strength Index (RSI) forms a higher high. This divergence signals that the bulls are gaining strength and could lead to a price surge.
Experts suggest that if SOL manages to hold above the $120 level, it could potentially soar by 42% to reach $180 in the near future. The recent price action and historical momentum support this optimistic outlook for SOL.
As of now, SOL is trading near $126, with a notable 8% surge in the past 24 hours. The increased trading volume by 25% indicates a rise in participation from traders and investors, contributing to the asset’s upward momentum.
On-chain metrics also point towards a bullish sentiment surrounding SOL. Data from Coinglass, an on-chain analytics firm, reveals a $60 million worth of SOL outflow from exchanges in the past 24 hours. This significant outflow suggests potential accumulation and buying pressure, further fueling the upside momentum for SOL.
Additionally, traders have increased their open positions, with SOL’s open interest surging by 11% in the past day. Traders are currently over-leveraged between $125.8 and $128.5, with $40 million worth of long positions and $23 million worth of short positions being built during this period.
Taking into account these on-chain metrics and technical analysis, it appears that SOL is poised for a bullish resurgence. The asset could soon recover and potentially reclaim the $180 level in the coming days, as bulls regain control in the cryptocurrency market.