The Market’s Resurgence
The cryptocurrency market is witnessing a renewed surge in investor interest. Ethereum has surpassed the critical $2,000 mark, while Bitcoin is testing $38,000. Simultaneously, Solana has experienced a significant price increase, breaking the $50 resistance level after 1.5 years. This surge has sparked concerns about a potential price correction in the near future.
Solana’s Short-Term Buyers Left: Bullish Signal
The liquidation chart revealed a noteworthy trend when SOL exceeded $45. More than $17 million in short positions were liquidated, and short-term long position holders capitalized on the price surge to profitably sell off their stakes. Coinglass data indicated that long positions were not immune to liquidations either, with longs worth over $11.5 million liquidated in a single day.
The exit of short-term long-position holders during Solana’s (SOL) price increase serves as a bullish signal for the altcoin. This behavior indicates controlled profit-taking without disrupting the ongoing uptrend.
- With short-term holders out of the market, there’s less likelihood of a sudden increase in selling activity if SOL encounters resistance at higher levels.
- This discourages the opening of new short positions by sellers, contributing to a more stable upward move for SOL’s price.
The current market sentiment leans towards bearishness, reflected in the declining long/short ratio at 0.9298, with short positions dominating at 52%, while bulls maintain a 48% presence.
What’s Next For SOL Price?
In the last few hours, Solana has exhibited a notable upward price trend, reaching a high of $52. However, selling pressure from bears prevented further surges. As of now, SOL trades at $50.5, reflecting a surge of over 11% in the last 24 hours.
Bulls are experiencing a slight retreat as SOL struggles to hold above $50, but buyer interest persists, evident in repeated attempts for a breakout. Investors are optimistic about overcoming the next resistance level at $59, potentially leading to another surge and consolidation in the $68-$80 range.
On the bearish side, bears aim for a decline below EMA20. A reversal below the $40-$45 zone could trigger strong selling, potentially validating the $30 level. Nevertheless, this level is likely to witness strong buying demand, creating opportunities for a rebound.