Solana’s price broke above $165 on June 4, 2024, and has been up 4% in the last 3 days; however, mounting LONG positions suggest more upside could follow.
Solana Price Reverse Last Week’s Losses
In the last week of May, Solana’s price struggled for traction as the spot ETH ETF’s approval on May 23 attracted investor attention and capital towards Ethereum DeFi and spot markets. However, as the euphoria surrounding the landmark approval cools off, demand for Solana has taken a positive turn since the start of June.
Looking at TradingView’s daily price chart, SOL price has increased from $161 on June 1, to establish a steady support base above the $165 mark at the time of writing on June 4.
This sustained 4% surge over the last 72-hours suggests bullish momentun is now returning to the SOL markets, following the ETF approval euphoria, that saw invest divert capital towards the Ethereum ecosystem.
Traders Deploy $150M Leverage as Bullish Momentum Returns
Another key indicator of the growing bullish sentiment across Solana markets is the unusually high leverage LONG positions mounted by speculative traders this week.
Coinglass’ Liquidation map data tracks the amount of leverage contracts currently listed for a specific asset across recognized derivatives trading platforms. It provides clear insights into changes in investor sentiment for the assets’ short-term price prospects.
Solana futures markets attracted an influx of LONG positions this week, far outpacing the volume of active SHORT contracts. As seen above, bull traders have deployed $151.09 million leverage on LONG positions with the 20% boundaries of the current prices.
Meanwhile, the total volume of SHORT contracts stands at $110 million. This $41 million shortfall means that bull traders have taken on more aggressive positions, with growing confidence that spot prices will rise further and yield amplified profits in the days ahead.
Essentially, the chart shows that bulls now have more skin in the game and are more likely to make additional spot purchases to earn quick profits on their high-risk leverage positions.
With Solana’s price currently trading for $165, another major breakout towards $180 could be on the cards if this scenario plays out.
However, if markets enter another downtrend, SOL price will likely find formidable short-term support around the $155 level. Considering that over 90% of the $150 million leverage contracts are listed between $164 – $154, hence, Solana could attract significant demand within this channel, as bulls look to avoid major liquidations.
