Solana Shows Potential Upswing as Bulls Face Ongoing Struggles

• SOL has experienced a 9.11% increase over the past month.
• Solana has crossed above the 200 EMA on daily and 4-hour timeframes, indicating a possible upward trend.

After reaching a local peak of $193, Solana [SOL] has struggled to sustain its upward trajectory and recapture higher price levels. Consequently, the altcoin remains confined within a consolidation zone between $140 and $160.

This situation illustrates that since falling below the $160 mark, sellers have outnumbered buyers, resulting in prices being trapped in this range.

At the time of this report, SOL was trading at $146, reflecting a 9.11% increase on monthly charts, with the altcoin also posting moderate gains on weekly and daily charts.

Despite these recent advances, SOL is still 43.9% below its all-time high of $259 achieved in 2021.

Although SOL has had difficulty breaching the $160 resistance, the recent price movements foster optimism, attracting attention from analysts. Notably, Coin Signals has pointed to a potential upsurge, citing the 200 EMA as a significant indicator.

Solana Crosses 200 EMA

In their analysis, Coin Signals indicated that SOL has moved above the 200 EMA on daily and 4-hour charts. This price action suggests that the altcoin has escaped from the symmetrical triangle formation.

Source: X

This indicates that a breakout above the upper trend line could initiate a new uptrend. As such, the altcoin appears poised for additional price increases.

Insights from SOL’s Charts

At the press time, Solana’s Long/Short Ratio on a 4-hour timeframe measured 1.2, suggesting that holders of long positions are gaining traction in the market. This trend indicates more traders are anticipating price increases rather than declines.

Source: Coinglass

This demand for long positions is further underscored by a positive DyDx Exchange Funding Rate observed over the previous week. This indicates that those holding long positions are paying a premium to maintain their trades during market corrections.

This trend also reflects the confidence of investors in the altcoin’s potential for future appreciation.

Source: Santiment

Additionally, Solana’s Open Interest in USD per Exchange has been on the rise over the last week, increasing from $649 million to $712 million.

This trend indicates that investors are consistently opening new positions in anticipation of further gains.

Source: Santiment

Check out Solana’s [SOL] Price Prediction for 2024–2025

In summary, while SOL has faced challenges in breaking above the $140 and $160 levels, the altcoin is demonstrating improving market sentiment.

This trend may position Solana for additional upward movement. A breakout past the $160 resistance could propel the altcoin towards the $170 mark.