On the 28th (local time), Cointelegraph reported that historical price patterns and Fib retracement indicators indicate the possibility of a price rise for Solana.
The company recently reported that Solana's futures outstanding contracts reached $7.5 billion, and the funding ratio is now in the negative, raising the possibility of a strong short squeeze.
Solana has yet to establish a clear uptrend after testing the $180 Rebels line on May 11 and then dropping below that level. However, it has risen above the 50-week mark for three consecutive weeks.
The bullish signal was maintained by a closing above the 50-week exponential moving average (EMA), which has acted as a key support level that has sparked significant price rallies in the past.
At the end of 2023, SOL broke out above the 50-week and 100-week EMAs, after which it rose by approximately 515% by March 2024 and has remained at this level. The weekly Relative Strength Index (RSI) is currently at 52.
The current technical structure is showing similarities to past bull cycles, and Solana is on track to reach a psychologically and historically stable high by the end of 2025.
The possibility of a re-attempt to break out of the $300 key resistance level has been raised. Trend-based Fibonacci extension indicators also support this outlook. The recent low of around $95 has led to a rise in the price since January.
According to Cointelegraph, a Fibonacci extension analysis based on the high of $295 puts the short-term target price at around $300, which means upside potential of around 70% from the current price.
If the price enters a "price discovery" zone, it could rise to the 1.618 Fib extension and target a maximum of $418, Regraf said.
On the other hand, if the 50-week EMA support line breaks down, it cannot be ruled out that the price may retest the lower support zone at $157 levels.
Solana is still trading about 40% below its all-time high, but the futures market is active.
According to CoinGlass, the current open contracts for Solana futures are
Interest was $7.5 billion, close to the $8.5 billion recorded on January 19 this year.
Such a high level of open contracts indicates speculative demand and suggests that there may be large price fluctuations ahead.
In addition, the fund raising ratio across the exchanges has turned negative, and the proportion of short positions has increased.
This reflects a generally bearish sentiment, but at the same time, it could also mean short positions are liquidated, causing a spike.
General said of the current market situation, "A combination of high open contracts, increasing trading volume, and low funding rates is stabilizing prices."
Such a structure could lead to a strong upside and if the momentum builds, we expect the price of SOL to attempt to break out of $300.
As of 11:30 a.m. on the 29th, Solana was trading at 173.5 on the cryptocurrency marketplace CoinMarketCap, down 0.64% from 24 hours earlier.
It is trading at $3.
2025/05/29 13:36 KST
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