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SOL price bounced off the $120 support multiple times since April, leading traders to believe that the current market recovery will lead to an explosive rally.
Crypto traders have zoomed in on the emergence of a strong support line on Solana’s price chart, leading some to believe it is the launch pad for a “sizable” upside move in the near future.
“Looks like $SOL held support at $120,” veteran trader Peter Brandt wrote in a Sept. 20 post. Brandt was referring to the Solana’s price action on the daily chart, showing SOL’s consolidation in a rectangle with lower limit of the rectangle at $120 acting as support since mid-April.
“This could become a rectangle capable of launching a sizable advance.”
BTC/USD daily chart. Source: Peter Brandt
Fellow trader TraderKoz made similar observations noting that SOL price has successfully retested $120 thrice in the recent past, reinforcing the importance of this level to buyers.
According to TraderKoz, those looking to go long on SOL should wait for a retest of the zone between $135 and $140.
Source: TraderKoz
Among the top ten cryptocurrencies by market capitalization, Solana (SOL) has seen the highest growth over the past seven days (8.82%), ahead of Bitcoin (BTC) with a 6.45% rally, according to data from CoinMarketCap.
At the time of publication, Solana is trading at $148.50, and appears ready to extend its “bullish momentum” to hit its short-term target at $160, according to crypto trader CryptoZhi.
Related: Solana unveils new Seeker device, says it’s not just a ‘memecoin phone’
Futures traders have also been expanding their positions amid the bullish pattern.
Open Interest (OI) — a measure of the total value of all outstanding or “unsettled” futures contracts across exchanges — has risen 12.5% to $2.34 billion over the past three days, according to Coinglass data.
Solana OI rose over the last three days. Source: Coinglass
Additional data from DefiLlama shows that Solana has seen a decline in total value locked (TVL) since late August, though there was a slight increase over the last three days from $4.66 billion on Sept. 18 to $5.15 billion on Sept. 20.
Similarly, data provided by Dune Analytics dashboard pump shows that daily transactions on the Solana blockchain climbed from 4,630 to 8,023 between Aug. 14 and Sept. 19.
Solana’s deployed transactions performance chart. Source: Pump.Fun
The increase in TVL and onchain transactions on Solana indicates growing network activity and adoption. Higher user interaction with the platform leads to increased demand for SOL and is believed to positively impact its price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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