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- Solana’s bullish pennant pattern suggested that SOL could reach the $299 level following a breakout.
- Traders were overleveraged, with $251.2 on the bottom and $264.1 on the top.
Solana (SOL), the world’s fourth-largest cryptocurrency by market capitalization, is expected to see notable gains as it forms a bullish price action pattern.
Recently, along with major cryptocurrencies, SOL reached an all-time high (ATH). But now the price appears to be consolidating near that level.
This price consolidation near ATH hinted at potential preparations for a further rally.
At press time, SOL was supported by bullish price action, current market sentiment, and high engagement from traders and investors.
Solana price action and key levels
According to technical analysis by AMBCrypto, SOL has formed a bullish pennant pattern on a 4-hourly basis and is currently on the verge of a breakout.
Based on recent price action and historical price momentum, this bullish pattern has emerged near the strong resistance level of $260.
Source: TradingView
If SOL breaks out of this bullish pennant pattern, breaks past resistance, and closes a 4-hour candle above the $260 level, it will likely rise 15% to $299 within a few days.
The asset is currently trading above the 200 exponential moving average (EMA), indicating an upward trend. Traders and investors often rely on this indicator before establishing positions.
Additionally, the relative strength index (RSI) is 57.10, indicating that SOL has room to rally in the future.
Mixed feelings about on-chain metrics
Aside from technical analysis, on-chain indicators suggest mixed emotions among traders.
According to on-chain analytics firm Coinglass, SOL’s open interest decreased by 3.5%, indicating that traders either closed out their positions or faced liquidation during the price correction.
However, a break from the current price action pattern can attract investors and traders alike.
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According to the Coinglass exchange liquidation map, the current major liquidation levels are $251.2 at the bottom and $264.1 at the top.
This data indicates that traders have high leverage at these levels. A breakout or breakdown of these levels can provide traders with a safer entry point.
Source: Coinglass