Solana Long-Short Ratio Surges with a Stunning Reversal!!! Market Sentiment Aims for Bullish, Bull Market Sets Sail
Analysts point out that Solana's recent price trend has formed a cup and handle breakout pattern on the long-term chart, suggesting that its price could soar to $4,000. If this target is achieved, Solana's market capitalization will reach $2 trillion, putting it on par with Bitcoin.
Technical Factors and On-Chain Data Working in Tandem
Solana has risen significantly by 220% in 2024, and although it has pulled back to $220 after nearing an all-time high of $264, the Fibonacci retracement levels and the 50-day EMA provide strong support, indicating that there is still room for price increase. Recently, the daily trading volume of SOL surged to $7.62 billion in just one week, with increased liquidity and market interest being the main drivers of its recovery.
Market Recovery: Price has rebounded from the support level of $205.41, forming a rebound signal.
Bull Market Signs: Solana's long-short ratio has risen to 1.03, surpassing bearish options for the first time, indicating a bullish market sentiment.
Future Potential and ETF Impact
Recent discussions about Solana ETFs have been increasing, and although the SEC has not yet approved them, the market generally expects positive changes in January 2024. With an increase in applications for spot Solana ETFs, Solana's liquidity is expected to significantly enhance, providing a new catalyst for price increases.
Additionally, analysts including Sherpa and CryptoQuant believe that Solana's pullback presents an opportunity for low entry points. This asset not only has a strong technical background but is also expected to set new all-time highs in the future.
Currently, SOL is trading at $225, with a market capitalization exceeding $107 billion, demonstrating its capability to lead the market among altcoins. As Bitcoin and altcoins rise together, Solana's upward momentum may just be the beginning.
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