Solana (SOL) has recently seen a significant price uptick, with the altcoin approaching the key resistance zone of $160. In the previous week, SOL price was rejected by this level, and was still struggling to cross it.
However, this upturn in the price is due to the emergence of fresh long positions, which fueled the demand surge. This was accompanied by an increasing number of traders betting on the price hike.
In the first half of the week, SOL bounced from a low back in a range and crossed the $150 round mark. Additionally, a bullish crossover was spotted, which drove the price up.
Meanwhile, SOL has lost popularity, as it remained in a tight range for the past two weeks. It exhibited lower volatile swings.
Amid the speculative move due to the upcoming Spot ETF anticipation, SOL price stagnated close to $150. However, it failed to register a range breakout.
While it is bullish on the higher time frame, the altcoin price oscillates within a certain range. A daily close above the $165 mark would exhibit a breakout ahead.
Solana Up For A Potential Breakout: Price Action Outlook
The daily chart showed that the SOL price analysis fluctuated in a range for the past two months. It failed to breach the upper resistance zone of $200.
Last month, a fake trendline breakout was exhibited, and buyers were trapped on the peak. It resulted in a panic-long unwinding move. This led to a price correction of over 30% and retested the $120 mark.
Afterward, SOL defended the mark and accumulated with a low volume. SOL has been trading at $157.61, with an intraday surge of over 8.90%, signifying the buying interest.
SOL Price Chart | Source: Santiment
In a notable development, renowned cryptocurrency analyst Ali Martinez shared a bullish forecast for the Solana. Ali said Solana had made an Adam & Eve pattern, suggesting an uptick toward $164.
Successfully breaking the region might push the altcoin toward the $200 mark ahead.
#Solana might be shaping up for an Adam & Eve pattern, suggesting a potential rise to $164. If $SOL clears that resistance, we could see a 33% surge toward $220! pic.twitter.com/vAEl9GsK9D
— Ali (@ali_charts) August 23, 2024
A Tweet by @ali_charts | Source:X
The Relative Strength Index (RSI) line showed a positive crossover and crossed the midline region. It reflected the increased buying pressure.
TVL Witnessed A Remarkable Rise
Amid the price consolidation, SOL’s Total Value Locked (TVL) started moving upwards, and an uptick was noted. It represented a rise in the investors’ confidence and improved liquidations.
Currently, SOL has a TVL of $5.35 Billion with a 24-hour volume of $837.23 Million.
At press time, more than $2.85 Million shorts were liquidated. In contrast, only $76.18k longs were liquidated, revealing the bullish sentiment.
Furthermore, its future open interest rose by over 8.45% to $2.30 Billion. A fresh, long buildup activity was observed in the last 24 hours.
Along with the price uptick, the weighted funding rate went positive and crossed the zero line, noted at 0.0054% underlying the bullish outlook.
However, it stayed in a tight-range move, and the next significant direction would be unlocked above the $190 mark. On the other hand, there is $120 in support, which is a crucial level to look out for in a massive breakdown.
