82.2% of Solana (SOL) Traders Long, Price Set to Hit New High?
Solana (SOL), the world’s fifth-largest cryptocurrency by market capitalization, is poised to gain upward momentum as it formed a bullish price action pattern on the four-hour time frame. Earlier, SOL broke out of a bearish head and shoulders pattern and price reversed after the breakout, trapping the bears.
Solana (SOL) Technical Analysis and Upcoming Levels
Today, December 5, 2024, SOL broke out of the two-week downtrend line and is now heading towards all-time highs. With a strong bullish breakout and a four-hour candle closing above the $240 resistance, experts at CoinPedia say the breakout could push gold prices higher. Sol It rose 10%, hitting the $265 mark the next day.
On the positive side, the altcoin is trading above the 200 exponential moving average (EMA) on the four-hour time frame, indicating an uptrend. Meanwhile, SOL’s relative strength index (RSI) currently stands at 55, which is below overbought territory, indicating that the asset has plenty of room to surge.
RSI is a technical indicator that traders and investors use to determine whether an asset is in oversold or overbought territory and make informed decisions accordingly.
Bullish on-chain indicators
With positive technical analysis, on-chain indicators further support SOL’s bullish outlook. According to on-chain analytics firm coin glassthe long-short ratio of SOLUSDT on Binance currently stands at 4.61, indicating strong bullish sentiment among traders.
As of the time of writing, 82.17% of the top traders on Binance hold long positions, while 17.83% hold short positions.
According to open interest data from Coinglass, trader interest and confidence in SOL has remained stable, in addition to a large number of long positions on Binance in the past 24 hours.
Open interest in SOL has edged up more than 1.2% in the past 24 hours, indicating traders are showing mild interest in a potential breakout. Given the recent price action, this OI value is likely to increase in the coming hours.
Solana (SOL) Price Analysis
Currently, SOL is trading near $240, with the price rising by more than 3.5% in the past 24 hours. During the same period, its trading volume increased by 8.5%, indicating that traders and investors have little interest in the recent breakout.
