Solana Rises 20% As Bullish Trends Hint at Further Upside

The price of Solana (SOL) is up by over 20% in the last 24 hours, outperforming the rest of the top ten largest cryptos by market capitalization.

According to analyst @Ali_Charts on X, Solana’s rebound has been “wild,” as the coin recovers from the August 5 crash that saw it plunge to levels last seen in March 2024.

Technical indicators are flashing green, making the case for a further upside for Solana. At the time of writing, SOL was trading at $141. 

A technical analysis of Solana shows that the price remains below the 20-day Exponential Moving Average (EMA), indicating short-term bearishness. However, the long-term picture looks positive, with SOL crossing above the 200-day EMA after the recent rebound.

The price has bounced from the 100% Fibonacci level at $122, invalidating the short-term bearish thesis. $122 is a strong support level for SOL, and any unexpected dips below it will result in a drastic drop to around $77.

However, with the current bullish momentum, SOL will likely target 0.618 and 0.5 Fibonacci levels, placing the immediate resistance at $149 and $157.

On the downside, the 20-day EMA at $158 is a key resistance level for SOL. Breaking above this price will lower Solana’s downside risk. 

Trader @Randy Lawrence on X supports the bullish case for SOL, saying that the price will dash to the next key resistance at $187. 

Solana Liquidation Map

A look at the Solana futures market strengthens the bullish case for the fifth-largest crypto by market capitalization.

Following the recent downtrend that wiped out Solana’s gains, many leveraged long positions were wiped out. The high number of liquidations suggests that weak long traders were shaken amid the volatile price action, reducing the short-term selling pressure on Solana.

Furthermore, lower leveraged short positions indicate that any further upside for Solana will be driven by fresh buying interest and not forced liquidations.

The Solana liquidation map suggests that Solana’s price has stabilized, and volatile price swings might not be seen in the short term. Therefore, a steady increase in buying activity will contribute to a steady rise in price.

According to Coinglass, Solana’s open interest has also increased by 12% in the last 24 hours, showing high investor engagement. As more traders and liquidity enter the market, SOL is confirming the bullish sentiment and growing confidence in the current positive price movement.