- The momentum of Solana’s price is nearing critical resistance levels as accumulation by whales accelerates.
- An increase in open interest and notable liquidations indicate that Solana may be facing heightened market volatility in the near future.
Solana [SOL] has surpassed Ethereum in a remarkable turn of events, achieving the highest 7-day DEX (Decentralized Exchange) volume at $11.8 billion, compared to Ethereum’s $9.2 billion. This spike has led many to speculate if Solana is preparing for a significant bull run.
Therefore, a thorough analysis of Solana’s price behavior, whale movements, liquidation statistics, and open interest levels is essential to determine if this is a pivotal moment in the cryptocurrency landscape.
Will Solana successfully breach resistance and rally?
At the time of writing, SOL was priced at $153.09, showing a slight drop of 0.99% in the last 24 hours. Yet, despite this small decline, the price trend remains upward.
Crucially, the $163.66 level serves as a significant resistance barrier. A successful breakout above this point could trigger a rally.
In addition, the RSI is reading at 52.31, indicating neutral momentum, while the MACD suggests the potential for bullish momentum to develop. Thus, the focus is on whether Solana can sustain its upward momentum and climb higher.
Source: TradingView
Whale accumulation in SOL indicates potential increase
Interestingly, whales holding more than $5 million in Solana now dominate 57.07% of the stablecoin supply. This increase in concentration among large holders suggests deliberate accumulation. Historically, such movements often precede price rallies.
Thus, this accumulation heightens expectations that SOL could soon experience a marked price increase. The whales appear to be positioning for a robust upswing, displaying confidence in Solana’s long-term prospects.
Source: Santiment
Could SOL liquidations lead to increased volatility?
Recent liquidation data indicates that $348.39K of long positions were liquidated in the past 24 hours, along with $70.02K in short positions. This significant liquidation of long positions points to traders who expect continued upward movement.
However, this also reflects a high degree of market leverage, which can turn risky if critical resistance levels do not hold. Consequently, further price fluctuations could arise if the market shifts against over-leveraged traders.
Source: Coinglass
Growing open interest signals market optimism
Open interest for SOL has risen by 2.26%, reaching $2.45 billion. This increase indicates a growing interest among traders and an anticipation of amplified volatility in the near term.
Furthermore, with Solana leading DEX trading volumes, traders are optimistic about its potential to outperform the wider market.
Source: Coinglass
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In light of SOL’s robust performance and the rise in whale holdings, the likelihood of a bull run appears strong. Should the price breach resistance levels and evade further liquidations, we may witness a swift price surge.
However, traders should remain vigilant due to liquidation risks. Nonetheless, Solana is strategically positioned to spearhead the next significant crypto rally.
