Solana (SOL), the world’s fourth biggest cryptocurrency by market cap, is poised to continue its upside momentum as on-chain metrics shift in whale favors. After a sharp price decline, SOL found support at $205.5 and resumed its upside momentum. It is poised to continue its upside momentum in the coming day.
Solana (SOL) Bullish On-chain Metrics
The on-chain metrics, trading volumes, and traders’ rising interest in the altcoin indicate that traders’ rising SOL is set for short-term upside momentum.
According to the on-chain analytics firm DefiLlama, traders’ interest and liquidity in the SOL’s chain appears to rise. Data shows that SOL’s daily trading volume has skyrocketed to $2.91 billion on December 7, 2024to $6 billion on December 11, 2024, which is highest since November 2024.
Besides this, Coinglass’s SOL Long/Short ratio has reached its highest level since the beginning of November 2024. However, it currently stands at 1.05, this notable rise in the long/short ratio indicates strong bullish sentiment among traders.
When combining these on-chain metrics, it appears that bulls are back and continue to dominate the asset and support in the upcoming rally.
SOL Technical Analysis and Upcoming Level
According to the expert technical analysis, SOL appears bullish as it has successfully retested the crucial support of the $205 level.
Source: Trading View
Based on the recent price action and historical momentum, the SOL rally could continue if it breaches the resistance level at $240. If SOL breaches this level and closes a daily candle above $241, there is a strong possibility it could soar by 10% to reach $269 in the coming days.
At press time, SOL is trading near $227 and has registered a price surge of over 7% in the past 24 hours. During the same period, its trading volume dropped by 34% indicating lower participation from traders and investors compared to the previous days.
