Crypto price prediction: Solana (SOL) short term investors are holding positions than the long terms

SOL crypto price prediction:

Solana crypto chart analysis

Solana (SOL) was trading near $123 early at the morning session, showing signs of continuing a recent 6% upward movement. This increase in price has caught the attention of many traders and investors, as they look to see whether the positive momentum will last. The rise is part of a short-term rebound that started earlier this week. But right now price has seen little drop to reach $117.

Looking deeper into the market data, there's an important level to watch around $129. A large amount of short positions worth about $10.52 million are currently placed near this price. These are trades that profit if the price goes down, so if Solana pushes above this level, it could force those traders to exit their positions quickly.

If SOL breaks through the $129–$130 resistance area, it could lead to what's called a "short squeeze." This happens when short sellers are forced to buy back in, driving the price up even more. In that case, Solana might climb even higher, potentially reaching the $150 mark in the near future.

However, traders should be cautious. As Solana approaches the $130 level, there's a chance that the price could pull back if it fails to break through the resistance. This would mean the bullish run might pause or even reverse temporarily.

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On the other side, if the price drops, the next major support level is around $110. Data shows there’s about $7.57 million in long positions there, which means many traders are betting the price will rise from that point. If the price falls below $110, it could signal a shift in momentum and allow the bears to take control.

RSI right now at 39.41, which is below the neutral level. It means still the bearish momentum is dominating and the market is more control by the sellers rather than buyers. To invalidate the scenario it needs to cross the neutral level.

Solana's price is at a critical moment. Breaking above $130 could send it soaring, while slipping below $110 might end the current upward trend. Traders should watch these key levels closely in the coming days.