A decline in Solana's vitality indicates that long-term holders are accumulating instead of selling, suggesting confidence in the asset's future.
A long/short ratio of 1.01 indicates that more traders are betting on price growth, reflecting a bullish sentiment.
If these trends continue, SOL could rise above $190 and may reach $195.55, although profit-taking could drive it down to $171.88.
The popular altcoin Solana has gained strong bullish momentum over the past week, rising by 15% amid renewed market optimism.
With overall sentiment towards cryptocurrencies improving, two key on-chain signals suggest that this bullish trend may continue, potentially driving SOL towards the $190 price level.
Solana traders are making big bets on upward momentum.
First, on-chain data shows a significant decline in SOL activity over the past 14 days. This metric, which tracks the movement of previously dormant tokens, fell to 0.764 yesterday, indicating a decrease in SOL sales among long-term holders.
SOL activity.
It measures the activity of long-held tokens by calculating the ratio of destroyed days to the total accumulated days. When it rises, it indicates that more dormant tokens are being moved or sold, suggesting profit-taking by long-term holders.
Conversely, when activity decreases, long-term holders retain a significant portion of inactive coins, reflecting an increase in accumulation and confidence in the asset's future.
This trend depicts a strong conviction among major SOL holders. If it continues, it could pave the way for an extended bullish run as overall market sentiment improves.
Moreover, buying pressure is significant in the SOL derivatives market, as reflected in the current buy/sell ratio of the currency, which stands at 1.01.
The buy/sell ratio for SOL.
The buy/sell metric measures the ratio of long to short bets in the asset's futures market. A ratio above one indicates more long positions than short ones. This indicates bullish sentiment, as most traders expect the asset's value to rise.
On the other hand, a buy/sell ratio of less than 1 indicates that more traders are betting on a decline in the asset's price than those expecting an increase.
The long buy/sell ratio for SOL reflects heightened demand for long positions. Traders continue to position themselves to benefit from the ongoing upward movement, which could bolster the currency.
SOL is nearing the critical $190 level, but profit-taking risks loom.
In the daily chart, SOL is trading above an upward trend line, a trend that appears when the asset's price is generally increasing over time, with buyers being more dominant than sellers.
If this continues, SOL could decisively break above the $190 mark and head towards $195.55, the highest level reached last on July 28.
SOL price analysis.
However, a resurgence in profit-taking activity could nullify this bullish outlook. If sellers return to the market, they could push the price of SOL below the upward trend line and towards $171.88.
