TLDR:
Solana (SOL) price has surged to $170, reaching a two-month high
Derivative traders are driving the current SOL rally
Analysts predict SOL could reach $190-$250 by the end of October
Positive price change and Open Interest indicate bullish sentiment
SOL formed an inverse head-and-shoulders pattern, suggesting a bullish trend
Solana (SOL) has captured the attention of investors as its price soared past $170, marking a two-month high and igniting speculation about further gains before October ends. This surge comes amid a broader crypto market rally, with Bitcoin recently touching $69,400.
As of the latest data, SOL is trading at $170.17, representing a 7.1% increase in the past 24 hours. This upward movement has been partly attributed to Bitcoin’s weekend price jump, which saw the leading cryptocurrency briefly surpass $69,000 for the first time in two and a half months.
Solana Price on Coingecko
Market data suggests that derivative traders are the primary force behind SOL’s current rally. According to Coinglass, both the price change and Open Interest (OI) change for SOL are positive, indicating that traders are taking long positions on the asset. This combination of metrics typically signals strong bullish sentiment in the market.
Further supporting the bullish outlook, the funding rate for SOL has been on an upward trend since October 18. When funding rates increase alongside price appreciation, it generally points to robust optimism among traders. This alignment of factors suggests that derivative trading activity is playing a significant role in driving SOL’s price movement.
From a technical analysis perspective, SOL has formed an inverse head-and-shoulders pattern, a formation often interpreted as a signal for a potential trend reversal from bearish to bullish. The break above the pattern’s neckline, which occurred around the $160 mark, has further confirmed this bullish outlook.
Based on this pattern, analysts are projecting a potential move towards the $190 level, which would represent a 16.41% gain from current prices. Historical price action suggests that SOL may encounter resistance around $190 and $230 as it climbs. However, if the asset can break through these levels, some analysts believe it could reach as high as $250, marking a 46% increase from its current trading price.
It’s important to note that the market also has strong support levels. The previous neckline around $160 is now acting as a support, and a retest of this level could provide an entry point for buyers looking to join the uptrend.
However, if SOL fails to hold above $160, it could signal weakness in the market, potentially leading to a drop towards lower support levels near $140 or even $130.
In the short term, many traders are eyeing the $190-$195 range as a first take-profit zone. If SOL can break through this resistance with strong momentum, the next targets would be in the $230-$250 range.
While the current sentiment appears overwhelmingly positive, investors should remain cautious of potential volatility. The cryptocurrency market is known for its rapid price swings, and external factors such as regulatory news or macroeconomic events could quickly alter the market dynamics.
As October draws to a close, all eyes will be on Solana to see if it can maintain its upward trajectory and reach the ambitious targets set by analysts.
The post Solana SOL Surges Past $170: Analysts Eye $250 Target for October’s End appeared first on Blockonomi.