Solana (SOL) Beat Bitcoin (BTC) and Ethereum (ETH) as the Market Sentiment Shifted to a Downtrend

The ongoing selling pressure across the cryptocurrency market has shifted the overall sentiment toward a downtrend. In this, Solana (SOL), the world's fifth biggest cryptocurrency by market cap is gaining notable attention from crypto enthusiasts as it holds itself positive in terms of price changes in the past 24 hours.

The cryptocurrency market is experiencing a downturn, with overall sentiment shifting toward a downtrend due to ongoing selling pressure. However, Solana (SOL), the world's fifth largest cryptocurrency by market capitalization, is attracting attention with its positive price performance.

SOL has outperformed major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) over the past 24 hours. At press time, SOL is trading around $172, up over 3.4%. During the same period, its trading volume has declined by 20%, suggesting fear among traders and investors, likely due to the current market conditions.

Expert technical analysis indicates bullishness for SOL. It recently broke out from a two-day strong consolidation between the $162 and $170 levels. Following this breakout, SOL could rally by 10% to reach the $190 level in the coming days.

Moreover, SOL is trading above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.

With the recent breakout, short sellers have liquidated nearly $3.5 million in short positions, while bulls have registered a liquidation of $350,000. This liquidation indicates that bears are currently exhausted.

On-chain metrics also support SOL's bullish outlook. According to CoinGlass, a crypto data platform, SOL's Long/Short ratio currently stands at 1.02, indicating a strong bullish market sentiment among traders. Additionally, its open interest has increased by 11%, suggesting buildup of new positions, likely due to the recent consolidation breakout.

Traders and investors often use rising open interest and a Long/Short ratio above 1 when building long positions. Combining these on-chain metrics with technical analysis, it appears that bulls are currently driving the asset, which could help them achieve the mentioned target.

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