Solana (SOL) Set For Bull Run, Insights From On-Chain
Solana (SOL), the world’s fourth-largest cryptocurrency by market capitalization, is poised to continue its upward momentum as on-chain indicators turn in favor of whales. After a sharp price decline, SOL found support at $205.5 and resumed its upward trajectory. It is expected to continue its upward momentum in the coming days.
Solana (SOL) Bullish On-Chain Indicator
On-chain indicators, trading volume, and traders’ growing interest in the altcoin suggest that SOL is poised for short-term upward momentum.
Trader interest and liquidity in the SOL chain appear to be rising, according to on-chain analytics firm DefiLlama. Data shows that SOL’s daily trading volume soared from US$2.91 billion on December 7, 2024 to US$6 billion on December 11, 2024, reaching the highest level since November 2024.
Additionally, Coinglass’ SOL long-short ratio has reached its highest level since early November 2024. Although currently at 1.05, the significant rise in the long-short ratio indicates strong bullish sentiment among traders.
When combined with these on-chain indicators, the bulls appear to be back and continuing to dominate the asset, supporting an upcoming rally.
SOL Technical Analysis and Upcoming Levels
According to expert technical analysis, Sol It appears bullish as it has successfully retested the key support at $205.
Based on recent price action and historical momentum, the rally may continue if SOL breaks resistance at $240. If SOL breaks above this level and closes above $241 on the daily, there is a good chance it could surge 10% to $269 in the coming days.
At press time, SOL was trading near $227, with the price surging more than 7% in the past 24 hours. During the same period, its trading volume fell by 34%, indicating that trader and investor participation was lower than in previous days.
