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Cryptocurrency traders have focused on the appearance of a strong support line on Solana's price chart, leading some to believe this is the springboard for a "significant" price surge in the near future.
“It appears that $SOL has held support at $120,” veteran trader Peter Brandt wrote in a September 20th post. Brandt referred to Solana ’s price action on the daily chart, which shows SOL consolidating within a rectangle with the rectangle’s lower bound at $120 acting as support since mid-April.
"This could become a rectangle that has the potential to be the starting point for significant growth."
Daily chart of BTC/USD. Source: Peter Brandt
TraderKoz also offered similar observations, highlighting that the SOL price has successfully retested the $120 level three times recently, reinforcing the importance of this level for buyers.
According to TraderKoz, those looking to buy SOL long-term should wait for a retest of the area between $135 and $140.
Source: TraderKoz
Among the top ten cryptocurrencies by market Capital , Solana (SOL) has seen the highest growth over the past seven days (8.82%), surpassing Bitcoin (BTC) with a 6.45% increase, according to data from CoinMarketCap .
At the time of publication, Solana was trading at $148.50 and appeared poised to gain upward momentum to reach a short-term target of $160, according to cryptocurrency trader CryptoZhi. Accordingly , futures market traders have also expanded their positions amidst the bullish pattern.
Open Interest (OI) — a measure of the total value of all “unsettled” futures contracts on exchanges — has increased 12.5% to $2.34 billion over the past three days, according to data from Coinglass.
Solana (OI) has increased over the past three days. Source: Coinglass
Additional data from defillama shows that Solana has seen a decrease in TVL since the end of August, but has seen a slight increase over the past three days from $4.66 billion on September 18 to $5.15 billion on September 20.
Similarly, data from Dune Analytics ' dashboard shows that the number of daily transactions on Solana 's blockchain increased from 4,630 to 8,023 between August 14th and September 19th.
Solana's trading performance chart. Source: Pump.Fun
The increase in TVL and on-chain transactions on Solana indicates growing network activity and adoption. Higher user interaction with the platform leads to increased demand for SOL and is expected to positively impact its price.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk, and readers should conduct their own research before making any decisions.
