Traders spot a bullish pattern on Solana’s chart, leading some investors to predict a price rise following a 17% increase over the past seven days.
A bullish pennant formation has emerged on the price chart, alerting cryptocurrency traders to “watch out” for Solana price movement.
Trading site CryptoBusy noted in a post dated July 18 that there is a “SOL HUGE PENNANT on the 1D chart,” which appears when the market consolidates inside a triangle-shaped pattern after a significant downward move.
They warned, saying, “Watch out for this price action.” In the meantime, “Solana is still showing impressive strength” in comparison to the rest of the cryptocurrency market, according to cryptocurrency trading account InvestAnswers.
According to CoinMarketCap data, Solana SO$162 has grown at the second-highest rate (17.01%) over the last seven days among the top ten cryptocurrencies by market capitalization, behind XRP XRP$0.55 with an increase of 23.57%.
According to cryptocurrency trader Honey, Solana has surpassed its “short-term target” and is currently trading at $160.94.
While the asset is still unknown, Honey advised against excessive leverage.
She cautioned her 105,600 X followers to “go easy on the leverage” and said, “This is a pivot area, and I’d be cautious with longs if you’re entering here.”
Amidst the bullish pattern, futures traders have also been increasing their stakes.
According to CoinGlass statistics, Open Interest (OI), a gauge of the total value of all existing or “unsettled” Bitcoin futures contracts across exchanges, has increased by 22.14% to $2.13 billion during the last ten days.
Honey points out that although the asset might reach $192, it also risks dropping to $140 if it breaks below its present level.
A decline to this point would result in losing about $161 million in long bets.
However, some traders—including Crypto Tony—think that a further 1.3% increase is still necessary and that the $160 level is not the crucial support needed for entry.
The next objective is to recover $163 into support, as anonymous cryptocurrency trader Crypto Tony noted.
They said, “Above $163 is another level to reclaim for an easy, safer entry.”
