NOIDA (CoinChapter.com) — Solana’s price surged past $150, gaining over 4% in the last 24 hours. The token showed strong bullish momentum, reaching a local high of $152.14. The recent uptick came amid increased network activity and favorable technical indicators, which could be the reason why Solana price is up today.
Solana’s average monthly return for October historically stands at 14%, further fueling investor optimism. Despite geopolitical uncertainty affecting other assets, Solana has maintained its upward trajectory, positioning itself well for potential gains this month.
Bullish Momentum in Solana Fueled by Futures Data
Positive market sentiment continues to drive Solana’s price. Open Interest (OI) in futures markets has been climbing, reflecting increased investor participation. This rise in OI and a consistently positive funding rate signals strong demand for long positions.
The funding rate indicates that long traders are paying short, which suggests bullish market sentiment. An increasing OI coupled with positive funding has historically supported price gains, reflecting growing confidence in future price appreciation.
Recent price action has already broken through key resistance levels at $140 and $145. With the price stabilizing above $150, the market looks set for further upward movement, particularly if the positive OI trends persist.
Institutional interest and increasing retail participation support the hypothesis of continued price gains, particularly if Solana breaks above the immediate resistance near $155. However, traders should closely monitor funding rates and OI, as any sudden shift in these metrics could signal a reversal.
Bullish Setup Could Be Why Solana Price Is Up Today
Moreover, the SOL USD pair has formed a bullish technical setup, ‘the bull pennant pattern,’ which could help the token register more gains if it breaks out of the pattern.
The bull pennant pattern is a classic technical indicator suggesting the potential continuation of an existing upward trend. This pattern emerges when the price of an asset consolidates within a narrowing range after a strong upward move, creating a shape that resembles a small, triangular flag.
The pattern is characterized by two converging trendlines connecting high and low prices during consolidation. During this phase, trading volume usually decreases, signaling market indecision as traders await the next significant move.
For the bull pennant to confirm a bullish continuation, a breakout above the upper trendline is essential, ideally accompanied by a substantial increase in volume. This volume surge indicates robust buying pressure, reinforcing the likelihood of continued upward momentum.
However, if the breakout occurs without a significant increase in volume, the risk of a false breakout rises. In this case, the price may fall back into the pennant’s range, potentially signaling a reversal.
According to technical analysis principles, if the SOL USD pair successfully breaks out of the bull pennant, it could theoretically target a level nearly 1,076% higher than its current price, suggesting a potential rise to approximately $1,800.
The price target is dramatically high, which means it is unlikely that the SOL price will immediately achieve the price mark. However, a breakout would infuse confidence in SOL price action, attracting traders to the market and increasing the buying
NFT news
Crypto market predictions