Solana (SOL) indicates some form of possible breakout, as seen through price action and whale movement. As of press time, SOL is trading at $143.55, having risen by 2.41% in the last 24 hours. However, the price action appears quite positive, but some crucial levels need to be breached for a bullish trend to be considered valid. Solana’s critical targets are $148.058 and $161.97, the latter being the high last seen in July.
Analyst Solana Outlook
According to analyst Altcoin Sherpa, Solana may not have had the same explosive move it once had in the near term. However, he predicted that SOL would perform better than Ethereum (ETH).
$SOL dont think its going to have the run it had before (for a while) but it should still prob outperform ETH. it's still the best place to speculate and gamble imo. I think this is still an area to accumulate pic.twitter.com/bDU0vmredH
— Altcoin Sherpa (@AltcoinSherpa) October 5, 2024
SOL is still among the most popular altcoins for speculation and gambling, making it a good place to stack. Sherpa’s analysis shows that Solana might not explode soon, but the token has the potential to overtake all other major cryptocurrencies, including ETH, in the next few months.
Key Consolidation Levels
The price movements suggest Solana is in a consolidation zone around the $135.524 level. If the price can conquer the barrier and maintain the movement, this could indicate a bull market with the following levels at $148.058 and $161.97. However, if the upward trend reverses, SOL may retest the lower support level of $127.60, which is bearside for short-term traders.
Solana Price Drops Amid Centralization and Market ConcernsWhale buying and selling have significantly contributed to the current trading on the Solana Market. Data from the on-chain analytics platform Santiment indicate that big players holding upward of $5 million in stablecoins now hold 61.63% of Solana. This significant size implies that the big investors are optimistic about further increases in Solana’s price.
Rising Short Liquidations
Also, the current liquidation data reveals that $1.91 million in short positions were liquidated, while only $147.5K in long positions. This contrast shows that short traders are increasingly adopting a more conservative approach, which might be because they expect a price breakout upwards. Liquidation of short positions results in higher volatility and upward pressure on the price, which is likely to accelerate the upward movement of Solana.
Solana is now at a crossroads, and an impending breakout could happen soon. Whale accumulation, increased liquidation of shorting positions, and an improved long/short ratio indicate that the sentiment is bullish. However, traders should be careful since volatility is still a big issue. A break to the upside or downside in the next few days could determine Solana’s fate.
