Solana Breaks Through Alarm Bears Repricing as Price Overcomes Resistance

News Report:
SOL Longs Maintain Dominance, Break Resistance, Leave Brief Liquidity.
Unclosed contracts have soared to levels last seen in April, highlighting strong activity in the derivatives space.
Solana [SOL]
Bulls have dominated over the past two weeks, leading to expectations of selling pressure earlier this week. The increase in short positions and liquidations this week is a result of sellers anticipating a pullback.
SOL has been experiencing an increase in selling pressure over the past five days. Please note that the cryptocurrency has been on an upward trend for the past two weeks, indicating intensified profit-taking pressure. Consequently, this has led to an increase in short positions.
On-chain data from Coinglass shows that over $7 million worth of short positions were liquidated in the past 24 hours. It also reveals that short positions account for 64.54% compared to long positions during the same period.
The long/short ratio for SOL has dropped significantly from 1.05 on September 20th to 0.95 and has since risen to 1.1 in the past 22 hours.
The decreasing long/short ratio for SOL since October 20th indicates an increase in short positions compared to long positions. This outcome is not surprising, as there are several reasons for it.
Since October 20th, most top coins have succumbed to selling pressure and experienced some pullbacks. Additionally, SOL retested the short-term resistance level around the same time.
Solana targets the next resistance area as bulls maintain dominance.
The discussed resistance range lies between $161 and $163. SOL has broken through these levels and continues to rise. The increase in short liquidations occurred above the resistance range.
Meanwhile, as of the time of writing, SOL has surged to a price of $174, and according to the RSI, it is now overbought.
The overbought condition indicates a higher likelihood of increased selling pressure. However, there is still room for further upside in the coming days. The next resistance level for SOL is at a price of $185.
The higher-than-expected price movement of SOL has created a scenario of short squeeze, especially considering the significant increase in unclosed contracts observed so far this week.
Read:
Solana’s [SOL] Price Prediction
2024-2025
Unclosed contracts have surged to $3.26 billion in the past 24 hours. The last time it reached such a high level was in early April.
The rise of SOL confirms the breakout momentum, which may encourage more traders to go long. However, it also highlights the possibility of a shift towards long-term liquidations once the short-term liquidity clearing is completed.