Over the past two weeks, the SOL bulls have been in control, leading to expectations of selling pressure earlier this week. Due to the expectation of a pullback by sellers, the number of shorts and liquidations has surged this week. More information Crypto Dumplings
SOL has experienced a surge in selling pressure over the past five days. Note that cryptocurrencies have been rising over the past two weeks, indicating that profit-taking pressure is increasing. This has led to a surge in shorts.
Coinglass on-chain data shows that over $7 million in short positions were liquidated in the past 24 hours. The data also shows that short positions accounted for 64.54% of long positions during the same period.
The SOL long/short ratio has dropped significantly from 1.05 on September 20 to 0.95, and has risen to 1.1 over the past 22 hours.
The decline in the SOL long/short ratio since October 20 indicates that short positions have increased significantly relative to long positions. This result is not surprising, for several reasons.
Since October 20, most top Tokens have succumbed to selling pressure and experienced some pullback since then. Additionally, SOL has retested short-term resistance around the same time.
Bulls Still in Control, Solana Aims for Next Resistance Area
The resistance area discussed is between $161 and $163. SOL has broken above these levels and continued higher. The surge in short liquidations occurred above the resistance area.
Meanwhile, SOL's price has risen to $175, and based on the RSI, it is currently in overbought territory.
The overbought condition suggests a higher likelihood of increased selling pressure. However, there is still room for upside in the coming days. SOL's next resistance level is at the $185 price level.
The strong price performance of SOL has created a short squeeze scenario. This is especially the case considering the surge in open interest contracts so far this week.
Over the past 24 hours, open interest has surged to $3.26 billion. The last time it reached such high levels was in early April.
The upward move in SOL has confirmed the breakout momentum, which may encourage more traders to go long. However, this also highlights the potential for a long squeeze once the short liquidity is cleared.
Solana Price Analysis: Showing Massive Recovery Potential, $200 Within Reach!
After breaking above $160 earlier this month, the asset is now trading comfortably above $170. Based on the recent price action, Solana may be poised for further upside, potentially testing the next key resistance level of $185.
According to the technical charts, Solana does not seem to face significant resistance going forward. The asset has settled into a relatively stable range after breaking above the $160 area, with support starting to form around $155. This solid support base and the continuously rising market sentiment suggest the asset will continue to climb higher. The next important level to watch is $185, which could be the next hurdle before the psychologically significant $200 mark.
Looking at the Relative Strength Index (RSI), Solana is slightly overbought, but still in an uptrend, currently around 71. However, a mild pullback or consolidation period may give the bulls more room to accumulate and prepare for a further upswing.
Bitcoin suddenly surged to $68,000, whale holdings hit a new all-time high 2009 Bitcoin whales cannot stop selling Ripple will showcase its strength through new filings Solana may test $185, and if it can maintain above the $170-$175 range, it is expected to face more resistance. The breakout above $160 is significant, as it signals a more dramatic market shift for Solana, as it has broken through a long-term resistance level that has suppressed the price for months.
Based on this trajectory, Solana may be entering a long-term bullish phase, especially if it can break above $185. After that, the $200 milestone would be within reach. Solana's price action typically indicates a clear uptrend. Strong market conditions and virtually no resistance ahead could propel the asset to $200 sooner rather than later.
In summary, the SOL bulls remain in control, breaking through resistance levels and leaving a trail of short liquidations. Open interest has surged to levels not seen since April, highlighting the active derivatives space. Solana's price action typically indicates a clear uptrend. Strong market conditions and virtually no resistance ahead could propel the asset to the $200 milestone soon.
