Solana (SOL) Eyes Breakout Above $190 as Bulls Take Control
Solana's impressive rally, driven by strong market indicators like its long/short ratio and Chaikin Money Flow, suggests a breakout above $190 could be imminent.
Popular altcoin Solana has posted four consecutive green daily candlesticks, driving its price up by over 11% since May 19.
Now trading above $180, the altcoin has gained 3% over the past 24 hours and appears poised to continue its upward trajectory in the near term.
SOL Eyes Further Gains as Futures Market Shows Optimism
SOL’s long/short ratio has climbed back above 1 for the first time since May 8. This signals a renewed appetite for long positions among futures traders and highlights a shift in market sentiment toward bullish expectations. At press time, this stands at 1.01.
SOL Long/Short Ratio. Source:
Coinglass
The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is below one, asset holders are betting on a price decline rather than a price increase.
Conversely, as with SOL, a long/short ratio above one indicates more long positions than short ones. This suggests bullish sentiment, with most traders expecting the asset’s value to rise.
The uptrend in SOL’s long/short ratio reflects growing optimism among its futures traders. This shift indicates that more market participants are now placing bullish bets on the coin, expecting its price to rise in the short term.
Moreover, the coin’s Aroon Up Line is at 100%, highlighting the strength of SOL’s current rally. The Aroon Indicator measures the strength and direction of a trend by tracking the time since the highest and lowest prices over a given period. It comprises two lines: Aroon Up, which measures bullish momentum, and Aroon Down, which tracks bearish pressure.
SOL Aroon Indicator. Source:
TradingView
When the Aroon Up line reaches 100 or is near it, the asset in question has recently recorded a new high. This is true of SOL, which trades at a nine-day high of $185.32 at press time.
This confirms the upward momentum and hints at a dominant bullish trend, suggesting that the price will likely continue its uptick.
SOL Gathers Strength Amid Rising Money Flow
Solana buyers are contributing to this positive momentum, with rising Chaikin Money Flow (CMF) reflecting steady coin accumulation among spot market participants. This momentum indicator is currently at 0.26 and in an upward trend, signaling the climbing demand for SOL.
The CMF indicator measures how money flows into and out of an asset. A positive reading like this indicates that buying pressure outweighs selling pressure. This trend confirms SOL accumulation and hints at the likelihood of a sustained upward price momentum.
In this case, Solana buyers could push the coin’s value above $185 to trade at $188.83. A successful breach of this resistance could propel the altcoin to $195.55.
SOL Price Analysis. Source:
TradingView
However, if the bears regain market control, they could trigger a price fall to $171.88.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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