On the seventh of April, the price of SOLANA (SOL) has collapsed to a 12-month minimum of $ 95.23, but since then has risen in price by 40%. This again aroused optimism in the derivatives market.
Now Solana has recovered. The coefficient of long/short positions on SOL has reached a maximum in the last 30 days. This indicates a significant increase in interest in long positions among traders in the futures market.
The ratio of long and short positions SOL has sharply grown
According to Coinglass, the coefficient of long/short positions on SOL is now 1.06. This is a maximum in the last month, and it reflects today’s surge in interest in long positions.
The coefficient of long/short positions shows the ratio of rates for a price increase (long position) and its decrease (short positions). The value below 1 suggests that more traders expect a drop in the price of the asset. And on the contrary, as in the case of SOL, the coefficient above 1 indicates optimism.
The growth of interest in long positions indicates that SOLANA traders more and more believe in the potential of further price growth. This is especially noteworthy, since after a sharp rebound from the annual minimum SOL entered the consolidation phase. Such a typical period of lull, which often precedes the new stage of growth.
If the demand for long positions is preserved and the purchasing pressure will increase, Sol can make a bull breakthrough from the current narrow range and begin a new stage of growth.
From a technical point of view, the MACD indicator (Moving Average Convergence Divergence) confirms this optimistic forecast. At the time of publication, the MACD line (blue) is above the signal line (orange).
This trend indicates the strengthening of a bull impulse in the spot market. The intersection of lines indicates the growth of purchasing pressure and confirms that the recent price increase can continue in the short term.
Solana is trying to gain a foothold above $ 130, the goal is $ 147
Now SOL is trying to gain a foothold above the new level of support, formed by $ 130.17. If the demand for long positions will remain and the bull impulse remains strong, the token can get out of the sidewoman and start the rally to $ 147.59.
On the other hand, if the bull’s onslaught weakens and investors begin to fix the profit, Solana can drop below $ 130.17 and fall to $ 95.54.
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Source: Cryptocurrency
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