On November 23, the price of Solana (SOL) hit an all-time high, leading to speculation that the altcoin could rise to $300. Even if that doesn’t materialize, recent data shows that Solana traders are betting on a recovery.
Why are traders so confident? Chain analysis shows whether these positions are potentially profitable or whether many are at risk of liquidation.
Solana Buying Pushes Selling Back
Data from Coinglass reveals that Solana’s Long/Short ratio on the 1-hour timeframe has increased to 1.17. This ratio measures market expectations, showing whether the majority of traders hold long-term short or long positions.
When the ratio is below 1, it indicates that there are more short positions than long positions. Conversely, a ratio above 1 shows that the number of traders betting on price increases is greater than those predicting a decrease.
Currently, 54% of Solana traders hold long-term positions, while 46.17% expect the price to fall below $255. This shows a bullish tilt in the trading community, with much optimism that the token price will increase.
Furthermore, it appears that these positions could be profitable thanks to an increase in Solana Transaction Rate, which is the number of successful transactions processed per second on its blockchain.
An increase in transaction rate signals an increase in user activity and engagement with the cryptocurrency, while a decrease indicates waning interest. According to Glassnode, Solana’s transaction speed is increasing. If this trend continues, it could push SOL price past its all-time high.
SOL price prediction: Upside potential remains
On the weekly chart, Solana’s price has crossed above the 20- and 50-period Exponential Moving Averages (EMAs), key indicators that measure trend. When price is above the EMAs, it signals an uptrend, while falling below them usually indicates bearish momentum.
At its current price of $255, across both EMAs, the altcoin appears poised to continue its uptrend. The formation of a bullish flag pattern further strengthens this outlook.
The bull flag pattern is a continuation pattern, showing that when the price breaks out, it is likely to maintain its previous upward momentum. As seen below, SOL has exited its accumulation phase and is heading towards higher levels.
As long as the price remains above the upper resistance of the accumulation phase, it can rally up to $325. However, if selling pressure increases, this optimistic scenario may change. At that time, SOL could drop below 200 USD.