SOL may be nearing a potential breakout, with whale activity and key resistance levels in focus.
- Solana’s next breakout could target $148.058 and $161.97 Whale accumulation and liquidation data pointed to growing bullish sentiment
Solana [SOL] is making waves in the market after rebounding from its recent lows on the price charts. As traders watch closely, the real question is whether SOL can successfully break through its resistance levels and ignite a bullish rally.
At press time, SOL was trading at $140.02, up 2.60% in the last 24 hours. The price action hinted at a possible breakout, but key resistance levels still stand in the way.
Can SOL break through and surge higher?
SOL’s price movement indicated a consolidation phase close to $135.524. A sustained breach of this level could trigger a bullish trend, with the next target at $148.058. Additionally, should momentum continue, SOL could test $161.97 – The high last seen in July.
On the contrary, SOL may retest the lower support at around $127.60, creating potential short-term risk for traders.
Source: TradingView
Whale activity – What are top holders signaling?
On-chain data revealed that whales, holding over $5 million in stablecoins, control 61.63% of the total supply. This sharp increase in whale accumulation suggests confidence in a potential upward movement.
Consequently, large players are positioning themselves too, potentially driving the price higher if SOL can break resistance.
Source: Santiment
SOL liquidation data – Are shorts feeling the pressure?
Interestingly, recent liquidation data revealed $1.91M in short positions liquidated, compared to just $147.5K in longs. Therefore, short traders are increasingly cautious, possibly anticipating a bullish breakout. This imbalance in liquidations adds fuel to the upside potential.
Consequently, should this trend continue, the growing liquidation of shorts may push SOL further north, increasing volatility in the near term.
Source: Coinglass
Long/short ratio – Who dominates the market?
The long/short ratio, at press time, stood at 51.55% in favor of longs, reflecting a growing bullish sentiment among traders. However, with 48.45% still betting against Solana, the market remains divided.
Thus, volatility can be expected and traders should keep a close eye on these ratios. If the longs continue to dominate, SOL could see significant upside, but swift reversals remain a possibility.
Source: Coinglass
Conclusively, Solana may be teetering on the edge of a potential breakout. Whale activity, liquidations, and the long/short ratio all are optimistic, but the resistance levels must be cleared first. If Solana breaks through, $148.058 and $161.97 would be the next key targets.
Therefore, traders should brace for a decisive move that could define Solana’s trajectory in the coming days.
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