- A bullish Adam and Eve pattern was forming on Solana’s chart
- Selling pressure on the token declined over the last few days
As the market condition turned bullish, several top cryptos, including Solana [SOL], pushed their prices up. Things can get even better for SOL though as a bullish pattern appeared on its price chart. A successful test of the pattern might initiate SOL’s journey towards $164 and beyond soon.
Solana’s road ahead
According to CoinMarketCap, SOL’s price surged by more than 10% last week. In the last 24 hours alone, the token saw a more than 6% value hike. At the time of writing, Solana was trading at $154.44 with a market capitalization of $71.9 billion, making it the 5th largest crypto.
In the meantime, a bullish pattern appeared on the token’s chart. Ali, a popular crypto analyst, recently shared a tweet highlighting that an Adam and Eve pattern might be emerging on SOL’s chart. The tweet mentioned that this pattern suggested a potential rise to $164.
Going forward, if SOL clears that resistance, we could see a 33% surge towards $220.
Source: X
Will SOL test this bull pattern?
AMBCrypto assessed the crypto’s on-chain data to find out the odds of SOL testing the Adam and Eve pattern. Our analysis of Coinglass’ data revealed that SOL’s funding rate increased along with its price. This can be interpreted as a sign that money has been flowing in the market – A bullish signal.
The token’s long/short ratio also registered an uptick. A rise in the metric means that there are more long positions in the market than short positions, indicating a rise in bullish sentiment around a token.
Source: Coinglass
AMBCrypto’s look at DeFiLlama’s data also revealed an interesting development.
We found that SOL’s inflows rose sharply on 22 August as the number exceeded $31 million. However, since then, SOL’s inflows dropped, suggesting that selling pressure on the token was diminishing. Whenever selling pressure drops, it means that the chances of a token appreciating are high.
Source: DeFiLlama
Finally, we took a look at Solana’s daily chart. The technical indicator MACD displayed a bullish crossover. Moreover, both the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered upticks, hinting at a sustained price hike in the coming days.
Read Solana’s [SOL] Price Prediction 2024-25
Hyblock Capital’s data also revealed that SOL’s liquidation will rise significantly once its price touches $155.5.
A hike in liquidations often results in price corrections. Therefore, it’s crucial for the bulls to push SOL’s price above that market in order to sustain the upward momentum.
Source: Hyblock Capital
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