- SOL continued to trade within its parallel channel, which could support a rebound to $225 or even $260.
- SOL’s Long/Short Ratio revealed that market sentiment was leaning bullish.
Solana [SOL] has been a key player in the cryptocurrency market, especially in its recent price movements.
Analyst Ali Martinez’s analysis shows that SOL has been following a clear parallel channel, a pattern often associated with steady price movement within defined levels.
This channel provides a strong framework where the price could potentially rebound towards $225 or even $260.
Source: Ali Charts
The Fibonacci retracement chart, as shown in the analysis, revealed key levels where SOL could react.
If the price respects the 61.8% retracement level, which aligns with the $225 mark, this could serve as the key point for an upward movement.
Additionally, the MACD indicator showed a bullish crossover, indicating momentum favoring upward movement. This type of crossover has historically been associated with significant price increases.
If these technical indicators hold, SOL could push toward the $260 price target, reflecting strong bullish momentum.
A turning point for Solana’s price
Further analysis highlighted SOL’s liquidation map on Binance, with a noticeable spike in long liquidations near the current price level of $193.
This suggested that many traders holding long positions have been forced to close as SOL approached this price, temporarily pushing the price down.
Source: Coinglass
However, the relatively low number of short liquidations indicates that bearish pressure is not overwhelming. This might support a recovery in SOL’s price.
The long liquidations have likely peaked, and as these positions close, the market could be primed for a rebound.
If SOL holds above the critical support of $190, this could mark the end of the bearish pressure and set the stage for a price rebound.
Long positions dominate
The SOL Long/Short Ratio analysis revealed that sentiment in the market was leaning bullish at press time, with a higher number of long positions compared to short positions.
source: Coinglass
The trend in the ratio is important because it can influence price movement. Alternatively, sustained increases in long positions often signal expectations of price increases.
This trend supports the bullish outlook for SOL, suggesting that traders are betting on a price rise.
The ratio also shows a significant shift towards more long positions. Thus, as the market stabilizes, reinforcing the potential for SOL to reach the projected price levels.
Setting the stage for a breakout
Open Interest for SOL Futures has been rising steadily. This growth suggests that more traders are entering the market, indicating rising confidence and interest in SOL’s price movement.
High Open Interest typically precedes significant price moves, and in this case, it supports the likelihood of a push toward the $225 or $260 levels.
The Open Interest increase, alongside the price remaining within its parallel channel, signifies that the market is positioned for a potential breakout.
If sentiment remains bullish, the rising open interest could fuel the upward movement, as more market participants align their positions.
Finally, the critical support level at $190 is key; if SOL loses this level, the bullish outlook will be invalidated.
