Solana (SOL), the world’s fourth biggest cryptocurrency by market cap, is poised for an upside trend due to favorable on-chain metrics for large-scale investors.
Bullish On-chain Metrics for Solana
The on-chain metrics, trading volumes, and increasing trader interest suggest short-term upward momentum for SOL. According to DefiLlama, there is increasing interest and liquidity in Solana’s chain. SOL’s daily trading volume skyrocketed from $2.91 billion on December 7, 2024, to $6 billion on December 11, 2024, the highest since November 2024. Coinglass reports the SOL Long/Short ratio has reached its highest level since early November 2024 and currently stands at 1.05, indicating strong bullish sentiment among traders.
SOL Technical Analysis and Key Levels
According to expert technical analysis, Solana appears bullish as it has successfully retested the crucial support of the $205 level. Recent price movements and historical momentum indicate that the SOL rally could continue if it breaches the resistance level at $240. A confident close above $241 could lead to a 10% increase, reaching $269 in the coming days.
Outlook and Current Situation
At the time of publication, SOL is trading near $227 and has registered a price surge of over 7% in the past 24 hours. During the same period, trading volume dropped by 34%, indicating lower trader and investor participation compared to previous days.
The increase in trading volumes and growing interest in Solana suggest a potential continuation of its upward movement, making it a focus for both traders and investors.
