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Solana (SOL) has surged to an impressive $72, catching the attention of crypto enthusiasts. The cryptocurrency managed to find substantial support at $61 before catapulting to its current value, with speculations arising about the potential for it to reach $81 in the near future, as suggested by a tweet from Cryptonary.
SOL rockets to $72: Next stop $81?$SOL managed to find support at $61 and has shot up to $72.
Even though some major timeframes may look overbought, SOL can see more upside.
But, OI is at yearly highs, and Funding is 0.03%, so Longs should be wary.
Deeper insights⬇️
SOL… pic.twitter.com/Q4FnztWrrU
— Cryptonary (@cryptonary) December 8, 2023
Technical analysis reveals that SOL has successfully bounced off the $61 support level, reclaiming its main uptrend. However, concerns arise as the current move is deemed overbought across various timeframes, particularly on the 3D and Weekly charts. The cryptocurrency now faces overhead horizontal resistance at $81, indicating a potential local top.
Despite the bullish momentum, caution is advised for long positions, given that Open Interest (OI) has surged to yearly highs at $1.06 billion, with a significant portion favoring long positions. Although lower than 24 hours ago, the OI-Weighted Funding Rate remains at 0.03%, signaling potential vulnerability for longs and the possibility of a squeeze.
Cryptonary provides insights, suggesting that SOL might be range-bound between $61 and $81 in the short term. The analyst does not rule out the possibility of a leverage flush out of long positions, which could result in a 10-15% pullback if SOL retests the $61 support level. Despite the caution, there is optimism surrounding Solana’s performance, with the cryptocurrency currently trading at $76.41, boasting a market cap of $32 billion and holding the sixth position on CoinMarketCap.
Factors Driving Solana (SOL) Rise
Solana’s recent surge can be attributed to various factors, including airdrops from Solana-based projects and the Jito airdrop, where eligible users received 10% of the total supply of 1,000,000,000 JTO tokens. The Jito Foundation, focusing on enhancing the staking economy, distributed the tokens to those who staked small amounts of SOL.
Additionally, Robinhood’s expansion of cryptocurrency trading options in the European Union may be contributing to the increased valuation of SOL, as the platform now supports over 25 digital assets, including Solana. With these factors in play, the future trajectory of Solana remains intriguing for both investors and enthusiasts.
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