Crypto enthusiasts are closely monitoring the formation of a robust support level on Solana’s price chart, which has sparked speculation that it could serve as a launching point for a significant upward movement in the near term.
“Looks like $SOL held support at $120,” seasoned trader Peter Brandt noted in a post on September 20. He referred to the daily price action of Solana, which has been consolidating within a rectangle, where the lower boundary at $120 has provided support since mid-April.
BTC/USD daily chart. Source: Peter Brandt
Another trader, TraderKoz, echoed this sentiment, highlighting that the SOL price has successfully tested the $120 mark three times recently, underscoring its significance for buyers. TraderKoz advised that those interested in a long position on SOL should wait for a re-examination of the zone between $135 and $140.
Source: TraderKoz
Among the top ten cryptocurrencies by market capitalization, Solana (SOL) has experienced the most substantial growth over the past week, rising by 8.82%, outpacing Bitcoin (BTC), which saw a 6.45% increase, as reported by CoinMarketCap.
As of this writing, Solana is trading at $148.50 and appears poised to continue its “bullish momentum,” with a short-term target set at $160, according to crypto trader CryptoZhi.
Related: Solana unveils new Seeker device, emphasizing it’s more than just a ‘memecoin phone’
Futures traders are also increasing their positions in response to this bullish trend. Open Interest (OI)—the total value of all outstanding or “unsettled” futures contracts across various exchanges—has surged by 12.5% to $2.34 billion over the past three days, according to data from Coinglass.
Solana OI rose over the last three days. Source: Coinglass
Moreover, data from DefiLlama reveals a decline in Solana’s total value locked (TVL) since late August; however, there was a modest uptick in the last three days, rising from $4.66 billion on September 18 to $5.15 billion on September 20.
Furthermore, insights from Dune Analytics show that daily transactions on the Solana blockchain surged from 4,630 to 8,023 between August 14 and September 19.
Solana’s deployed transactions performance chart. Source: Pump.Fun
The uptick in both TVL and on-chain transactions on Solana suggests an increase in network activity and user adoption. Greater interaction with the platform is likely to elevate the demand for SOL, which is expected to have a positive effect on its price.
This article does not serve as investment advice or recommendations. Every investment and trading decision carries risks, and readers are encouraged to conduct their own research before making any choices.