Crypto traders have zoomed in on the emergence of a strong support line on Solana’s price chart, leading some to believe it is the launch pad for a sizable upside move in the near future.
Support at $120
Veteran trader Peter Brandt noted that Solana held support at $120. Brandt was referring to Solana’s price action on the daily chart, which shows SOL’s consolidation in a rectangle, with the lower limit at $120 acting as support since mid-April.
Solana’s Growth Prospects
Fellow trader TraderKoz made similar observations, noting that SOL’s price has successfully retested $120 three times recently, reinforcing the importance of this level for buyers. According to TraderKoz, those looking to go long on SOL should wait for a retest of the zone between $135 and $140. Among the top ten cryptocurrencies by market capitalization, Solana has seen the highest growth over the past seven days at 8.82%, ahead of Bitcoin (BTC) with a 6.45% rally, according to data from CoinMarketCap.
Data Analysis
At the time of publication, Solana is trading at $148.50 and appears ready to extend its bullish momentum to hit its short-term target at $160, according to crypto trader CryptoZhi. Futures traders have also been expanding their positions amid the bullish pattern. Open Interest (OI) — a measure of the total value of all outstanding or unsettled futures contracts across exchanges — has risen 12.5% to $2.34 billion over the past three days, according to Coinglass data. Additional data from DefiLlama shows that Solana has seen a decline in total value locked (TVL) since late August, though there was a slight increase over the last three days from $4.66 billion on Sept. 18 to $5.15 billion on Sept. 20. Similarly, data from the Dune Analytics dashboard shows that daily transactions on the Solana blockchain climbed from 4,630 to 8,023 between Aug. 14 and Sept. 19. The increase in TVL and on-chain transactions indicates growing network activity and adoption. Higher user interaction with the platform leads to increased demand for SOL, which is believed to positively impact its price.
The increase in network activity and platform adoption could contribute to further growth of Solana. Traders view support levels and rising open positions as signals for potential price increases.
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