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  • Chandan Gupta
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    Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

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    Solana (SOL) Set to Hit New High, 82.2% Traders Hold Long Positions

    Story Highlights
    • Solana (SOL) could propel SOL by 10% to reach the $265 mark.

    • 82.17% of top Solana (SOL) traders on Binance hold long positions, while 17.83% hold short positions.

    • SOL has broken out of a two-week descending trendline and is currently heading toward its all-time high.

    Solana (SOL), the worldโ€™s fifth-largest cryptocurrency by market cap is poised for upside momentum, as it has formed a bullish price action pattern in its four-hour time frame. Earlier, SOL breached a bearish head and shoulders pattern, trapping bears as the price reversed after the breakout. 

    Solana (SOL) Technical Analysis and Upcoming Level 

    Today, December 5, 2024, SOL has broken out of a two-week descending trendline and is currently heading toward its all-time high. With a strong bullish breakout and the four-hour candle closing above the resistance level of $240, CoinPediaโ€™s expert suggests that this breakout could propel SOL by 10%, reaching the $265 mark in the coming day.

    On the positive side, the altcoin is trading above the 200 Exponential Moving Average (EMA) on the four-hour time frame, indicating an uptrend. Meanwhile, SOLโ€™s Relative Strength Index (RSI) currently stands at 55, below the overbought area, suggesting that the asset has enough room to soar.

    RSI is a technical indicator that traders and investors use to determine whether an asset is in oversold or overbought territory, and based on that, they make informed decisions.

    Bullish On-Chain Metrics 

    With positive technical analysis, the on-chain metrics further support SOLโ€™s bullish outlook. According to the on-chain analytics firm Coinglass, Binance SOLUSDT’s Long/Short ratio currently stands at 4.61, indicating strong bullish sentiment among traders.

    Source: Coinglass

    As of writing, 82.17% of top traders on Binance hold long positions, while 17.83% hold short positions.

    Besides notable long positions on Binance in the past 24 hours, traders’ interest and confidence in SOL have remained stable, as reported by Coinglassโ€™s Open Interest data.

    In the past 24 hours, SOLโ€™s OI has registered a modest gain of over 1.2%, indicating slight interest from traders amid a potential breakout. Given the recent price action, there is a strong possibility that this OI value could rise in the coming hours.

    Solanaโ€™s (SOL) Price Analysis 

    Currently, SOL is trading near $240 and has registered a price gain of over 3.5% in the past 24 hours. During the same period, its trading volume increased by 8.5%, indicating modest interest from traders and investors amid the recent breakout.

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