After a price drop of over 25% in recent days, Solana (SOL) is poised for a massive upside rally, having formed a bullish price action pattern on the four-hour timeframe. This bullish outlook has attracted notable investors and traders to the asset, as revealed by the on-chain analytics firm Coinglass.
$25 Million Solana (SOL) Outflow
Data on spot inflows and outflows revealed that as SOL’s price reached the crucial support level of $190, exchanges across DeFi witnessed an outflow of over $25 million worth of SOL tokens. This substantial outflow from exchanges indicates potential accumulation and could create buying pressure and upside momentum, which SOL is currently experiencing.
SOL is currently trading near $197 and has surged 1.50% in the past 24 hours. However, these price gains appear to be steadily increasing, indicating a bullish shift in market sentiment. During the same period, its trading volume dropped by 40%, suggesting lower participation from traders and investors compared to previous days.
$90 Million Worth Bets on SOL’s Long Positions
Looking at the current price recovery and shift in market sentiment, intraday traders are betting on the long side, as revealed by Coinglass data.
According to available data, at press time, traders holding long positions are over-leveraged at $188.8, believing that SOL’s price will not fall below this level. They have opened long positions worth $90.50 million. Conversely, $197.50 is another key level where traders holding short positions are over-leveraged, currently holding $33.70 million in short positions.
This data shows that bets on the long side are significantly higher than short positions, indicating that investors believe SOL’s price won’t fall below the $188.80 level in the coming days.
Solana (SOL) Price Action and Upcoming Levels
According to expert technical analysis, SOL is at a crucial support level of $189, aligning with the 200 Exponential Moving Average (EMA) on the daily timeframe.
Additionally, the asset is poised for a breakout above the descending trendline resistance, which it has been facing since January 20, 2024.
Based on recent price action, if SOL breaches this resistance level and closes a four-hour candle above $200, there is a strong possibility it could soar by 15% to reach $230 in the near future.
