Key Insights:
Solana has yet again crossed $100 giving a highly bullish signal that its rally is going to continue in February 2024 as well. Previous to this Solana broke down below its trend line and reached $79 on Jan 23, 2024. However, it soon traced back its path and is expected to continue the rally.
In the last four months, the value of Solana(and its TVL) has skyrocketed by more than 5000% taking its price from $23 in October to $125 in Dec 2023.
Solana had several bullish predictions recently. If we take a look at the Solana daily charts below, we can see that the short-term trend line has a much sharper slope than the long-term trend line. This shows that the price momentum for Solana has increased more in the last week.
Trend lines are representations of price momentum. The more sharp the slope of a trend line, the higher is the momentum. Typically, if the short term trend line is sharper, it signifies a rise in price momentum which is a good sign. If the reverse occurs it shows that the crypto price is losing its steam.
Data from Coin Glass shows that the total open interest in Solana is at 14.25 million SOL which translates to nearly $1.5 billion. This value has surged in the las t 24 hours with a 5.6% gain in the open interest.
Funding rate shows the data of payments made between longs and shorts of a certain cryptocurrency (here it is Solana).
The above chart also shows that there is a change in technical indicators such as the Relative Strength Index(RSI), which shows the momentum in price. The RSI touched a low of 41 on Monday January 22 but subsequently reverted to the levels of 59.3 after a week on Monday January 29, 2024.
This reversal indicates that the price momentum is towards the higher side.
Also if the RSI crosses the levels of 60, before the end of January 2024, it would mean that there is an imminent bull run in its price along with a very high momentum.
To analyze Solana's price we have used the daily chart which marks the price of Solana against USDT on Binance.
Solana fell down from its 52 week high of $125.19 on Monday 25 December 2023 which shows that there is a resistance at those levels, i.e., $125.
If the current rally materializes the price could soon reach dollar 121 which marks the low end of the next resistance range ($121-$125). In such case, buyers are expected to buy at current levels and ride the wave till $121 where they could either book profits.
If SOL's price crosses $125, it could soon reach $140 as per an earlier estimate.
As per CFGI Solana's Fear and Greed Index is now at 51% which shows that the traders are currently in a neutral state of mind. However as the volatility increases we expect it to increase till 70% or even more.
Derivatives data for SOL on Coin Glass shows that its volume has increased by 18.3% in the last 24 hours taking its total derivative volume to $6.11 billion.
Also, as we can see in the data below, most of the trades are on the shorter side and if the price increases this could make a short squeeze which could easily take Solana above to 110 as per our estimates.
Speaking on an overall view, we can expect Solana to make a big move in the next few days which may even cross its 52 week high of $125 per hour estimates.
However, we suggested to exercise sufficient precaution before making any financial decision.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.