- On April 16, Solana (SOL) price gained an upward momentum and soared by around 5% on a daily chart, increasing its value by around $90.
- The upward momentum in the cryptocurrency was witnessed after it broke a long consolidation pattern formed during the last few weeks.
- Despite the upward momentum in the Solana price, the cryptocurrency still has some volatility after facing major liquidation.
On April 16, Solana (SOL) price witnessed a spike of 5% on a daily chart, helping its value to soar near a major resistance level at around $90.
According to CoinMarketCap, Solana’s price is trading at around $89.31 with a spike of 4.97% in the last 24 hours. The cryptocurrency currently holds a staggering market capitalization of around $51.31 billion, which makes it the seventh biggest cryptocurrency in the world.
Solana (SOL) Rallies, Yet Volatility Fears Remain
According to the current price chart, SOL is looking overextended after a sharp breakout and is now trading into a major resistance zone. Based on the current market liquidation data, there is a high chance of volatility around the current highs. This price analysis is leaning toward shorting on any upward momentum.
At present, there is a recommended dollar cost averaging short zone between $89.60 and $90.40. Due to this, it is better to place a stop loss above $89 to avoid any kind of risk if the rally fades away.
According to Coinglass, Solana futures markets have witnessed around $23.27 million in total liquidations in the last 24 hours. In this liquidation, approximately $3.41 million in long positions were liquidated, and $19.85 million in short positions were liquidated. The data shows that mostly short traders faced forced liquidations as the SOL price climbed higher amid volatility that exceeded 8.09% during the session. In total, around 3,231 traders were liquidated around the world, with the largest single liquidation order reaching $994,958.
The current ETF inflows data confirm the steady demand for Solana among institutional investors. According to Farside data, on April 15, Solana ETFs recorded net inflows of around $5.3 million. This was led by Bitwise BSOL with $3.2 million, Fidelity FSOL with $1.5 million, and Grayscale GSOL with $0.6 million. On April 14, the Solana ETFs witnessed a net inflow of $1.3 million, while April 10 delivered the strongest single-day gain of $11.5 million. While these inflows are small in comparison to Bitcoin ETFs, it is still showing growing demand for SOL-based investment products among investors.
According to TradingView, the Relative Strength Index over the period of 14 days is currently revolving around 67. This confirms the buy conditions with strong upward momentum, entering into the overbought territory. This also means that buyers are still active, and there is room for further gains if trading volume stays strong. The current bullish momentum, where Bitcoin (BTC) price jumped above $75,000, is making it likely to see some more spikes in the upcoming days.
Moving averages around different timeframes are confirming the bullish momentum in SOL as the current price is trading above all major lines. The 5-day moving average is sitting at $88.860, the 10-day at $87.240, the 20-day at $86.227, the 50-day at $84.885, and the 100-day at $84.436.
Solana is breaking out of a symmetrical triangle consolidation pattern that formed over recent weeks around the $87 area. This classic consolidation has limited the price movement between converging trendlines. The current surge above the upper boundary is a major confirmation of the bullish pattern.
As of now, there are major support levels at around $88.669 and $88.047. If Solana falls below this level, it will drop around $85 or $84. If the price drops, these zones should work as strong floors based on the previous data. On the other hand, there is a major resistance at around $90.220, followed by $90.843 and $91.306.
Also Read: XRP Price Hits $1.40 Amid Solana Mention and ETF Inflows
