Insights on Solana’s (SOL) Bull Run from On-Chain Data

Solana (SOL), the world’s fourth-largest cryptocurrency by market capitalization, is expected to continue its upward trend as on-chain metrics favor whales. After experiencing a significant price decline, SOL found support at $205.5 and has resumed its upward trajectory. It is expected to maintain its upward momentum in the coming days.

On-chain metrics, trading volumes, and increasing interest from traders indicate that SOL is set for short-term gains. According to on-chain analytics firm DefiLlama, interest and liquidity in the SOL chain are on the rise. Data shows that SOL’s daily trading volume has surged from $2.91 billion on December 7, 2024, to $6 billion on December 11, 2024, reaching its highest level since November 2024.

Furthermore, Coinglass’s SOL Long/Short ratio has reached its highest level since the beginning of November 2024. Although it currently stands at 1.05, this significant increase in the long/short ratio indicates a strong bullish sentiment among traders.

When considering these on-chain metrics together, it suggests that bulls are back and continue to dominate the asset, supporting the upcoming rally.

Based on expert technical analysis, SOL appears bullish as it has successfully retested the crucial support level of $205.

Source: Trading View

Considering recent price action and historical momentum, the SOL rally could continue if it surpasses the resistance level at $240. If SOL breaks through this level and closes a daily candle above $241, there is a high possibility that it could surge by 10% and reach $269 in the coming days.

At the time of writing, SOL is trading near $227, experiencing a price surge of over 7% in the past 24 hours. However, its trading volume has decreased by 34% during the same period, indicating lower participation from traders and investors compared to previous days.

Tags: Crypto news, Price Analysis