- Following the breakdown of the H&S pattern, there is a strong possibility that SOL will reach $190 before November 2024.
- SOL’s open interest jumped 18%, suggesting the creation of new positions amid the recent breakout.
Solana (SOL), the fifth largest cryptocurrency in the world, turned bullish after a bullish price action pattern broke out. This breakout not only changed the sentiment of investors and traders but also raised hopes that SOL could soon soar higher in the coming days.
Solana Technical Analysis and Key Level
According to AMBCrypto technical analysis, SOL recently broke out of a bullish inverse head and shoulders pattern on the daily time frame. Based on historical data, any time an asset deviates from this health and safety pattern, it tends to skyrocket significantly.
This time, SOL has seen a bullish breakout over a longer time frame and is aiming for a higher rally in the coming days.
Source: TradingView
Solana’s prediction for November 2024
Despite this bullish outlook, SOL’s rally may not be straightforward. Few resistance levels could pose an obstacle to the upward momentum of the asset.
If SOL closes a daily candle above the $161 level, there is a high chance that it will skyrocket by 18%, reaching the next resistance level of $190 in the coming days.
However, given current market sentiment, it appears that SOL could reach this level before November 2024.
SOL’s bullish on-chain metrics
On-chain metrics further support SOL’s positive outlook. According to on-chain analytics firm Coinglass, the main liquidation levels currently sit at $156.6 at the bottom and $162.5 at the top, with traders overleveraged at these levels.
Source: Coinglass
According to the data, short sellers placed bets worth more than $14.46 million on the $162.5 level, believing that SOL’s price would not rise above it. The bulls, on the other hand, placed bets worth $36.24 million on the $156.6 level, believing that the price of the asset will not fall below this level.
Growing open interest
Currently, SOL’s open interest has increased significantly, indicating strong interest from traders post-breakout. Over the past 24 hours, its value has increased by 17.8%.
This notable increase in open interest suggests the creation of new positions during this period. Furthermore, this is the highest level since the beginning of October 2024.
Source: Coinglass
In fact, SOL’s long/short ratio stood at 1.11 at press time, indicating strong bullish sentiment among traders.
Market sentiment among traders
Combining all of these on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset. This could support SOL and help it reach the $190 level in the coming days.
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These bullish prospects are further reinforced by the upcoming presidential election in the United States. Historical data shows that October often brings bullish trends in the cryptocurrency market, especially as major events like elections approach.
This could further maintain Solana’s bullish momentum.
