- Following the breakout from the H&S pattern, there is a strong possibility SOL could reach $190 before November 2024.
- SOL’s open interest jumped by 18%, suggesting the buildup of new positions amid the recent breakout.
Solana [SOL], the world’s fifth biggest cryptocurrency, turned bullish following the breakout of a bullish price action pattern. This breakout has not only shifted sentiment among investors and traders, but also raised hopes that SOL could soon skyrocket in the coming days.
Solana technical analysis and key level
According to AMBCrypto’s technical analysis, SOL recently broke out from a bullish inverted Head-and-Shoulder pattern on the daily time frame. Based on historical data, whenever an asset breaks out from this H&S pattern, it tends to skyrocket significantly.
This time, SOL has experienced a bullish breakout over a longer period and is aiming for a higher rally in the coming days.
Solana’s prediction for November 2024
Despite this bullish outlook, SOL’s rally may not be straightforward. Few resistance levels could pose hurdles to the asset’s upward momentum.
If SOL closes a daily candle above the $161 level, there is a strong possibility it could soar by 18%, reaching the next resistance level of $190 in the coming days.
However, given the current market sentiment, it appears that SOL could achieve this level before November 2024.
SOL’s bullish on-chain metrics
On-chain metrics further support SOL’s positive outlook. According to the on-chain analytics firm Coinglass, the major liquidation levels are currently at $156.6 on the lower side and $162.5 on the upper side, with traders over-leveraged at these levels.
According to the data, short sellers have placed bets worth over $14.46 million on the $162.5 level, believing that SOL’s price won’t surpass it. Bulls, on the other hand, have placed bets worth $36.24 million on the $156.6 level, believing that the asset’s price won’t fall below it.
Rising open interest
As of now, SOL’s open interest has risen significantly, indicating strong interest from traders following the breakout. In the past 24 hours, its value has increased by 17.8%.
This notable rise in open interest suggests the buildup of new positions during this period. Additionally, it marks the highest level since the beginning of October 2024.
In fact, SOL’s long/short ratio stood at 1.11 at press time, indicating strong bullish sentiment among the traders.
Market sentiment among traders
Combining all 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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This bullish outlook is further supported by the upcoming presidential election in the United States. Historical data shows that October often brings bullish trends in the cryptocurrency market, especially leading up to major events like elections.
This could further maintain Solana’s upward momentum.
Read More: Are bulls back? Solana (SOL) target set for November 2024