Solana Price Explodes Past Key Resistance as Long/Short Ratio Hits 30-Day High More Upside Ahead?
- Solanas price jumps 40%, breaking past major resistance after rebounding from $95.23.
- Long/short ratio peaks at 1.06, showing increased trader confidence in a bullish rally.
- MACD crossover and RSI at 53.49 confirm strong buyer momentum and bullish sentiment.
After hitting a 1-year low of $95.23 last week, Solanas (SOL) price is now up by 40%. At the time of writing, the coins long/short ratio has hit a 30-day peak at 1.06, suggesting that there has been a massive increase in the demand for long positions.
Long/short ratio. Source: Coinglass
Traders Turn Bullish on Solana as Long/Short Ratio Climbs Above 1.0
This ratio compares the number of long positions (traders believing a rise in SOLs price will happen soon) with the number of short positions (those convinced SOLs price will decline soon).
If this ratio is below 1, it shows that there are more traders convinced that the assets price would drop, a bearish sentiment. In contrast, a ratio higher than 1 indicates that more traders expect the coins price to rise a bullish sentiment.
With this ratio above 1 at the moment, SOL traders are convinced that SOLs price will keep rallying.
Solana Sets the Stage for a Breakout as Bullish Momentum Builds
SOLs current price gain is notable given that the coin entered the consolidation phase after rallying from its 1-year low. A consolidation phase is a cool-off period before an asset starts the next leg of its bullish run.
The technical indicators are also bullish. At the time of writing, the MACD is bullish, with the MACD line (blue) crossing over the signal line (orange).
The crossover indicates a rising buyer momentum and confirms that the coins current price gains could continue over the short term. Another confirmation of the bullish bias is the increasing height of the green histogram bars, which suggests increasing strength.
In addition, the RSI at 53.49 indicates bullishness. An RSI above 50 is generally an indication of bullishness.
Solanas price is currently $131.04 according to TradingView data. Should buyers maintain their momentum, the coin could break out of its current pattern and rise towards $147.6, its next crucial resistance.
However, if the buying momentum weakens and the sellers take over to make profits, SOL could drop to its next crucial support of $103.17 or further drop to $95.54.
Read more: https://www.tronweekly.com/solana-price-long-short-ratio-hits-high/
Text source: TronWeekly
