Solana Poised for 15% Rally, Bullish Pattern Spotted

The overall crypto market is recovering, and amid this, Solana (SOL) is poised for a massive upside rally as its daily chart has formed a bullish price action pattern. After experiencing a price decline of over 15% in the past few days, SOL has found support at its 200 Exponential Moving Average (EMA) on its daily time frame. 

Solana (SOL) Technical Analysis and Upcoming Levels

According to expert technical analysis, SOL appears bullish as it is forming a bullish inverted head and shoulder price action pattern. Currently, SOL has one head and one shoulder, while the other shoulder is potentially in the process of forming. To complete the pattern, SOL needs to rally 15% to the $165 level in the coming days. 

If SOL successfully forms and breaks out of the inverted head and shoulders pattern, there is a strong possibility it could rally another 20% to reach the $200 level. Given the current sentiment, SOL could reach this level in the coming days.

However, its Relative Strength Index (RSI) is in the oversold area, indicating a potential price reversal from a downtrend to an uptrend.

SOL Current Price Momentum

At press time, SOL is trading near $144.10 and has experienced a price surge of over 5.75% in the past 24 hours. Meanwhile, traders and investors are hesitant to participate, likely due to the recent price decline, as its trading volume dropped by 20% during the same period.

Bullish On-Chain Metrics 

Solana’s positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SOL’s Long/Short ratio currently stands at 1.021, indicating bullish market sentiment among traders. When the Long/Short ratio is above 1, it suggests more traders are betting on price increases.

Additionally, SOL’s open interest has increased by 3.8% over the period of 24 hours, indicating strong momentum. Rising open interest alongside a rising price suggests strong bullish sentiment while falling open interest with an increasing price indicates a lack of conviction. 

Considering these on-chain metrics and the bullish price action pattern, SOL appears to be in a bullish trend, with bulls currently dominating the asset.