- The Liquidation Levels suggested that SOL’s price might rise toward the $140-$146 region.
- Solana’s Funding Rate stayed positive, indicating bullish sentiment among traders
Solana’s [SOL] price increased by 8.44% in the last 24 hours, making the cryptocurrency the best-performing top 10 asset in the last 24 hours. At press time, SOL’s price was $137.24.
As a result, the $200 price predictions have come back to life. The last time, SOL reached $200 was in April, indicating that the token has not reached such heights in almost two months.
However, there has been speculation of an altcoin season since Bitcoin [BTC] underperformed compared to other tokens in the top 10.
Altcoin season, also called “alt season,” occurs when non-BTC assets outperform the number one cryptocurrency.
For that to happen, at least 75% of the top 50 cryptos have to perform better than Bitcoin. However, this has not been the case. But if this happens in the coming weeks, the Solana native token could be looking at a higher value.
One indicator that can help predict the price is the Liquidation Levels. This indicator assist traders to identify where liquidation events might occur. It does this by looking at the cluster of prices with open long and short positions.
At press time, a cluster of liquidity existed from $140 up to $146. This means that the price of SOL might rise toward this region in the short term.
Source: Hyblock
But that would only be the case if buying pressure increases. Apart from the liquidations levels, examining the Cumulative Liquidation Levels Delta (CLLD) is important as well.
The CLLD calculates the sum of the difference between all long liquidations and short liquidations. A positive value indicates that there are more long liquidations.
However, when the value is negative, it means there are more short liquidations. At press time, Solana’s CLLD was positive. This was evidence of the retracing price especially as the value hit $139 earlier.
Furthermore, the CLLD also gives insights into the price direction. Interestingly, the highly positive CLLD was bearish signal for SOL. This is because the recent SOL retrace could go lower.
As such, SOL could erase a chunk of its gains in the next few days. If this is the case, the price could take a longer period before it hit $200.
In the meantime, Solana’s Funding Rate remained positive. Funding Rate measures the fees paid between longs and shorts. Positive values indicates that longs are paying shorts, and the broader sentiment is bullish.
Source: Santiment
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On the other hand, negative values indicate the shorts are paying longs. If this is the case, it means the trader sentiment is bearish.
However, one thing AMBCrypto noticed was that funding became lower as the price increased. For this price, this is bullish as it seems spot buying had increased.
