Cryptocurrency traders are noting a strong support line emerging on the Solana price chart, which some believe could be the starting point for a “significant” uptrend in the near future.
“It looks like SOL is holding support at $120,” veteran trader Peter Brandt wrote in a September 20 post. Brandt was referring to Solana’s price action on the daily chart, which showed SOL consolidating in a square with the bottom of the $120 square acting as support since mid-April.
“This could be a rectangle that could make significant progress.”
BTC/USD daily chart. Source: Peter Brandt
Another trader, TraderKoz, made a similar observation, noting that the SOL price has successfully retested $120 three times recently, highlighting the importance of this level for buyers.
According to TraderKoz, anyone looking to take a long position on SOL should wait for the price to retest between $135 and $140.
source: Trader’s Cause
According to data from CoinMarketCap, among the top 10 cryptocurrencies by market cap, Solana (SOL) has shown the highest growth (8.82%) over the past seven days, followed by Bitcoin (BTC) with a 6.45% gain.
According to cryptocurrency trader CryptoZhi, Solana is trading at $148.50 at the time of publication and looks ready to extend its “bullish momentum” to reach its near-term target of $160.
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Futures traders have also been increasing their positions amid the bullish pattern.
Open interest (OI), which measures the total value of outstanding or “unsettled” futures contracts across exchanges, has increased 12.5% over the past three days to $2.34 billion, according to Coinglass data.
Solana OI has been rising for the past 3 days. Source: Coinglass
According to additional data from DefiLlama, Solana’s total value locked (TVL) has been declining since late August, but has increased slightly over the past three days, from $4.66 billion on September 18 to $5.15 billion on September 20.
Similarly, data provided by the Dune Analytics dashboard pump shows that daily transactions on the Solana blockchain increased from 4,630 to 8,023 between August 14 and September 19.
Solana’s distributed trading performance chart. Source: Pump.Fun
The increase in TVL and on-chain transactions on Solana is an indication of increasing network activity and adoption. As user interaction with the platform increases, we believe demand for SOL will increase, which will have a positive impact on the price.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.