Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is showing signs of a bullish rally and is expected to hit the $165 price level soon. After consolidating within a tight range between $141 and $150, SOL has finally broken out and is ready for a surge.
At present, SOL is trading around $153.2, experiencing a price surge of over 7.2% in the past 24 hours. The trading volume has also increased by 25%, indicating growing participation from traders and investors.
Technical analysis suggests that SOL is bullish as it is trading above the 200 Exponential Moving Average (EMA) on a daily time frame. This is a positive indicator used by experts to determine the market trend.
Based on historical price momentum, if SOL closes its daily candle above $151.5, there is a strong possibility for it to soar by 13% and reach the $165 level, or even higher if sentiment remains unchanged. However, if it fails to close above this level, the bullish thesis may not hold.
Furthermore, SOL’s on-chain metrics support the positive outlook. The long/short ratio currently stands at 1.021, indicating strong bullish sentiment among traders. Additionally, the future open interest has seen a 4.9% increase in the last 24 hours and has been steadily rising since September 10, 2024.
Traders and investors often consider rising open interest and a long/short ratio above 1 as signals to build long positions. Currently, 50.5% of top traders hold long positions, while 49.5% hold short positions.
Overall, with the breakout from the consolidation range, bullish technical indicators, and positive on-chain metrics, Solana is expected to reach the $165 price level or higher in the near future.