Solana (SOL), the fourth-largest cryptocurrency by market cap, is regaining its upward momentum. After finding strong support at $205.5, SOL has started climbing again. On-chain metrics suggest further growth in the near term.
Bullish On-Chain Metrics Signal Positive Outlook
Key on-chain indicators highlight rising interest in Solana. Analytics from DefiLlama show SOL’s daily trading volume jumped from $2.91 billion on December 7 to $6 billion on December 11, the highest since November.
Additionally, Coinglass reports a notable increase in SOL’s long/short ratio, which now stands at 1.05. This indicates growing bullish sentiment among traders. Together, these metrics suggest that Solana’s upward momentum is well-supported by market activity and trader confidence.
Technical Analysis: Can SOL Break $240?
SOL recently retested the crucial support level of $205 and bounced back strongly. Analysts believe the next critical test lies at the $240 resistance level.
If Solana breaks above $240 and closes a daily candle above $241, it could gain another 10%, targeting $269 in the coming days. Currently trading at $227, SOL has risen over 7% in the past 24 hours. However, its trading volume has dipped by 34%, signaling reduced market participation.
What’s Next for Solana?
As bullish sentiment grows and technical indicators align, Solana is positioned for further gains. Investors should watch for a breakout above $240, which could spark a rally to higher levels.