Solana (SOL) has been on a tear lately, with its price jumping 17% over the past week. This significant rise has traders buzzing about a potential bullish breakout.
On July 18, CryptoBusy pointed out an emerging bullish pennant on Solana’s daily chart. This pattern typically forms when prices consolidate into a triangle shape following a sharp downward movement, hinting at a possible upward surge. “SOL HUGE PENNANT on the 1D chart,” CryptoBusy posted, encouraging traders to keep a close eye on this development.
In addition, the crypto trading account InvestAnswers highlighted Solana’s robust performance in comparison to other major cryptocurrencies. Over the last week, Solana has achieved the second-highest growth among the top ten cryptocurrencies by market cap, increasing by 17.01%, second only to XRP’s 23.57% rise, according to CoinMarketCap.
Currently, Solana is trading at $160.94, surpassing short-term targets set by analysts. However, trader Honey advised caution. “This is a pivot area and I’d be cautious with longs if you’re entering here,” she warned her 105,600 followers on X (formerly Twitter), recommending a conservative approach to leverage.
Futures traders are also ramping up their activity. According to CoinGlass data, Open Interest (OI) — which tracks the total value of outstanding Bitcoin futures contracts — has climbed by 22.14% to $2.13 billion over the past ten days. Honey noted that while Solana could potentially climb to $192, there’s also a risk of it dropping to $140 if it fails to maintain its current level, which could result in a loss of approximately $161 million in long positions.
Echoing a cautious sentiment, trader Crypto Tony suggested that the $160 level might not be the crucial support needed for a confident entry. “Upticking nicely here, reclaiming $163 into support is the next goal,” he said, indicating that surpassing $163 would provide a more secure entry point.
As Solana traders navigate these signals, it’s essential to remember that this article is not investment advice. Trading and investing in cryptocurrencies come with significant risks, so always conduct thorough research before making any decisions.
Stay tuned for more updates and insights into the dynamic world of cryptocurrency.
