Solana Spikes on Growing Bullish Momentum
19 Jul, 2024 ● Vijesti o kovanicama
Traders have identified a bullish pattern forming on the price chart of Solana, suggesting a potential price rally following a 17% increase over the past week.
“SOL HUGE PENNANT on the 1D chart,” reported trading resource CryptoBusy on July 18, referring to a pattern where the price consolidates within a triangle-shaped formation after a significant downward move.
“Watch out for this price action,” they noted. Additionally, crypto trading account InvestAnswers commented that “Solana is still showing impressive strength” compared to the broader cryptocurrency market.
Solana ranks among the top ten cryptocurrencies by market capitalization and has experienced the second-highest growth over the past week (17.01%), trailing behind XRP, which grew by 23.57%, according to CoinMarketCap data.
Currently, Solana is trading at $160.94, exceeding its “short term target,” as mentioned by crypto trader Honey.
Honey advised caution against overleveraging on Solana while it remains in a volatile zone.
“This is a pivot area and I’d be cautious with longs if you’re entering here,” she advised her 105,600 X followers, recommending them to “go easy on the leverage.”
Futures traders have also been increasing their positions in light of the bullish pattern.
Open Interest (OI) — representing the total value of all outstanding Bitcoin futures contracts across exchanges — has increased by 22.14% to $2.13 billion over the past ten days, according to CoinGlass data.
Honey mentioned that while Solana could potentially climb to $192, it also faces the risk of dropping to $140 if it fails to maintain its current level.
A drop to this level would result in the liquidation of approximately $161 million in long positions.
Meanwhile, some traders, such as Crypto Tony, believe that the $160 level is not the crucial support needed for entry, suggesting it still needs another 1.3% increase.
“Upticking nicely here, reclaiming $163 into support is the next goal,” stated pseudonymous crypto trader Crypto Tony.
“Above $163 is another level to reclaim for an easy, safer entry,” they added.
Sources:
https://cointelegraph.com/news/solana-sol-price-crypto-traders-bullish-price-chart-pattern-pennant
https://x.com/CryptoBusy/status/1814014884293771448
https://coinmarketcap.com/currencies/solana/
https://x.com/honey_xbt/status/1813559196597531033
