The world's fifth-largest cryptocurrency, Solana, is on the brink of a significant bullish rally, positioning itself for a major breakout. Most on-chain metrics suggest strong bullish signals before this breakout.
Solana's Inverted Head-and-Shoulders
According to CoinPedia's technical analysis, Solana is showing bullish signs as it approaches a breakout from an inverted head-and-shoulders pattern. This pattern has been present for over two months, with SOL testing the resistance level now serving as the neckline of this bullish pattern.
On-Chain Metrics: Bullish Signals
SOL's positive outlook is further supported by on-chain metrics. According to Coinglass, SOL's Long/Short ratio currently stands at 1.034, indicating strong bullish sentiment among traders. Additionally, its future open interest has jumped by 4.9% over the past 24 hours and continues to rise steadily.
Current Market Situation for SOL
At press time, SOL is trading near $155 and has experienced a price surge of over 4% in the past 24 hours. During the same period, its trading volume declined by 20%, indicating lower participation from traders.
Technical analysis and on-chain data indicate a potential strong growth for Solana if key resistance levels are breached. However, market participants should consider current conditions and trading dynamics.