The popular Altcoin Solana gained a strong upward momentum last week, surged by 15% amid a new market optimism.
As the broader crypto sentiment brightens, two important on-chain signals suggest that this bullish trend may continue, potentially driving Sol towards a $190 price level.
Solana Traders make a big bet on upward momentum
First, on-chain data shows a noticeable decline in Sol’s vibrancy over the past 14 days. This metric tracking the movement of previously dormant tokens fell to 0.764 yesterday, indicating a decline in SOL sales among long-term holders.
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Vitality measures the movement of long tokens by calculating the ratio of coin days to the total accumulated coin days. Climbing will suggest that more dormant tokens are being moved or sold, informing you that you will receive benefits from long-term holders.
Convergently, when vitality drops, long-term holders retain most of the inert coin, reflecting an increase in accumulation and trust in the future of the assets.
This trend shows strong beliefs among the main owners of Sol. If that continues, it will set the stage for an expanded bullish run as wider market sentiment continues to improve.
Furthermore, buy-side pressure is important in the sol derivatives market, as reflected in the current long/short ratio of 1.01 for the coin.
The long/short indicator measures the percentage of long bets on short bets in the asset futures market. A ratio of more than one indicates a longer position than a short position. This shows bullish sentiment as most traders expect their assets to rise.
On the other hand, a long/short ratio below 1 means that more traders are betting on the price of their assets to fall below those who expect it to rise.
The long/short ratio of Sol reflects the increased demand for long positions. The trader continues to position himself to profit from the ongoing upward movements that could strengthen the coin.
Sol is approaching the important $190 level, but the risk of profits is looming
On the daily charts, Sol trades beyond the upward trend line. This is a trend that appears when the price of an asset is generally rising over a long period of time, as buyers dominate the sellers.
If this continues, Sol could break the cross section beyond $190 to $195.55, reaching its last on July 28th.
But a revival of profitable activities could negate this bullish outlook. If the sellers return to the market, they can lead the price of Sol to $171.88 under the ascending trend line.
Disclaimer
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