After Hitting a 1-year Low of $95.23

Solana's (SOL) price is now up by 40%. At the time of writing, the coin's 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.

Solana’s (SOL) price is currently up by 40% after dropping to a 1-year low of $95.23 last week. At the time of writing, the coin’s long/short ratio has hit a 30-day high of 1.06, suggesting that there has been a massive increase in the demand for long positions.

This ratio compares the number of long positions (traders believing a rise in SOL’s price will happen soon) with the number of short positions (those convinced SOL’s price will decline soon).

If this ratio is below 1, it shows that there are more traders convinced that the asset’s price would drop, a bearish sentiment. In contrast, a ratio higher than 1 indicates that more traders expect the coin’s price to rise – a bullish sentiment.

With this ratio above 1 at the moment, SOL traders are now more focused on the coin’s potential to continue rising.

Solana (SOL) Long/Short Ratio at 30-day high. Source: Coinglass

This current 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 for an asset before it 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 coin’s 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.

Solana’s price is currently $131.04 according to TradingView data. Should buyers maintain their momentum, the coin could breakout 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.

News data source: kdj.com

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