Is Solana Ready to Break Free From Its Consolidation?

• Solana surged 4%, showing signs of recovery and positive market sentiment.
• Solana flipped 200 EMA, signaling a potential breakout from consolidation.

Solana (SOL), one of the leading altcoins, gained the attention of traders today by surging 4% in the past 24 hours, hitting a one-week high of $154. After a bearish week that saw its price drop below $135, SOL has shown signs of recovery over the past two days, recording a 4.2% increase over the last seven days. At the time of writing, SOL is trading at $152.91, with a 12% increase in trading volume, up 83% within the same period. Notably, 83% of the community remains bullish on Solana’s future.

Solana’s price has been stuck between $140 and $160, as the altcoin failed to reclaim higher levels since hitting a local high of $193. The current price action suggests that bears are keeping SOL in a consolidation range, preventing a breakout above $160.

However, technical indicators are turning positive. Analyst Coin Signals noted that Solana has flipped the 200 EMA on both daily and 4-hour timeframes, signaling a potential breakout from a symmetrical triangle. This could indicate the start of an uptrend, with SOL positioned for further gains. 

Meanwhile, Solana’s long/short ratio of 1.2 on the 4-hour chart indicates that traders are increasingly taking long positions, betting on price increases. This sentiment is supported by a positive DyDx Exchange Funding Rate and rising open interest, which has increased from $649 million to $712 million over the past week. 

What SOL Traders Should Look Upto?

The technical indicators for Solana suggest a bullish sentiment. The 9-day EMA stands at $146, while the Relative Strength Index (RSI) is at 59, indicating it is nearing an overbought condition.

Solana’s next key support level is around $138, a critical threshold to monitor if selling pressure increases. Should the market rebound later this month, SOL could regain momentum as positive global liquidity trends continue to support major cryptocurrencies, including Solana.

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