- One analyst forecast SOL to hit 3.17x in the short to medium term.
- Traders holding highly leveraged short positions may be liquidated.
Technical analyst Captain Faibik posted on X (formerly Twitter) that the price of Solana (SOL) could rise to $333.
In the chart shared by Faibik, SOL is outside the descending triangle. This means that the token’s trend is no longer bearish.
The post also showed that Solana’s future trajectory is only upward.
$SOL #Solana On your way to $333 📈 pic.twitter.com/6FXD3FSKyQ
— Captain Faibik (@CryptoFaibik) January 30, 2024
At press time, the price of SOL was $105.65, according to CoinMarketCap. This value represents an 8.90% increase in the price of the cryptocurrency over the last 24 hours.
During the same period, trading volume surged to $3.14 billion, indicating high interest in the token.
As Faibik mentioned, if SOL had surged to $333, it would mean that its value had increased by 3.17 times. But can SOL reach that price in a short period of time?
The path seems clear for a long time
AMBCrypto wanted to evaluate the possibilities. So we considered checking out the liquidation heatmap provided by HyblockCapital.
Liquidation heat maps help traders identify areas of high liquidity.
By checking some areas, traders can predict where liquidation events may occur. Our analysis of the indicator at press time suggests that traders who decide to buy SOL may not have any problems getting liquidated.
However, if a trader decides to sell the token and target the $82-$85 range, the position may disappear.
Those with low leverage may suffer, but open short positions with leverage of 25x to 100x risk losing their funds.
Source: HyblockCapital
At the same time, this does not guarantee a rise in SOL to $333. However, the above plot confirms that the Solana native token can easily surpass $115 in a short period of time.
If SOL breaks above $115, price action is likely to continue. In a recent article, AMBCrypto reported how some analysts predicted SOL would reach $140.
Looking at the current state of the token, it looks like the goal could become a reality sooner rather than later.
Open Interest Strengthens the Bullish Thesis
In terms of open interest (OI), Coinglass showed It is said to have increased to $1.26 billion. OI is the value of all public contracts. It increases or decreases depending on net position.
An increase in OI means that participants are increasing their positioning, while a decrease in OI means that liquidity is being drained from contracts linked to the cryptocurrency.
Source: Coinglass
Is your portfolio green? Check out our SOL Profit Calculator
For Solana price, a rise in OI could be a boost to the bullish trend. If prices continue to rise along with OI, SOL could rise 50% in the coming weeks.
However, price action may experience a decline along the way.