Solana (SOL) has recently seen a surge in price, breaking past the $160 mark after weeks of consolidation. This positive trend has investors and analysts optimistic about the future of this leading altcoin. On-chain analyst @ali_charts predicted a potential $2.98 billion short position liquidation at Solana’s $176 price zone, which could trigger a phenomenon known as a “short squeeze.”
A short squeeze occurs when short positions are liquidated, forcing those who bet against the asset to buy it back to cover their positions. This sudden influx of buying pressure can drive the price even higher. If SOL reaches $176 and triggers the predicted liquidations, the price may see a significant increase. Since mid-June, SOL has been trading between $130 and $150, with a low below $123 in early July. However, a recovery on July 14th pushed the price over $160 before consolidating.
Currently, SOL is trading at $155 with a 24-hour trading volume of $2.76 billion, marking a 9% increase over the past week and a 7.5% rise over the past two weeks. The daily price chart shows SOL trading between the upper and middle bullish trends, with the RSI in the overbought zone, suggesting continued upward momentum. Key resistance levels to watch include $165, $170, $175, and $180, with a potential surge into the $200 range if these levels are surpassed.
On the other hand, immediate support levels can be expected between $140 and $145, with further declines to $133 or $125 in more bearish scenarios. Despite potential setbacks, the overall market sentiment for Solana remains bullish, with expectations of further price increases. A breakout above $160 and $165 could indicate a sustained upward trend, potentially supporting the prediction of a significant liquidation event at $176 made by @ali_charts.
In conclusion, Solana (SOL) has shown promising signs of a bullish trend, with the price surging past $160 and potential for further increases. Analysts are optimistic about SOL’s future, with the possibility of triggering a significant liquidation event at the $176 price zone. Investors should keep an eye on key resistance levels and support levels to determine if SOL will continue its upward trajectory or face potential pullbacks. Overall, the current market sentiment for Solana is positive, signaling a potential upward movement in the near future.
