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What is happening?
The crypto market is in green: Uptober has officially arrived this past week.
As the Bitcoin price broke through a crucial resistance level of $68,000, altcoins are finally following the flagship cryptocurrency’s rally.
This has spurred positive momentum across altcoins, with the overall market cap at $2.44 trillion, and Bitcoin dominance at 55%, followed by Ethereum at 13%.
However, Solana (SOL) has experienced a mixed week. After reaching a high of around $158 earlier in the week, the price dropped over 4%, driven by a decrease in network activity Oct. 16-17 and a slight cooling off in the broader crypto market following Bitcoin’s rally.
Solana rebounded on Friday with a 5% price increase, partly due to renewed optimism surrounding the Firedancer validator being developed by Jump Crypto, which aims to enhance Solana's blockchain performance.
SOL bullish indicators
According to data from CoinGlass, Solana’s trading volume surged 24.88% on Friday, reaching an impressive $4.76 billion. This increased activity signals rising confidence and interest in SOL, which could positively impact its price.
Solana’s bullish sentiment is further reinforced by the current Long/Short ratio of 0.9685 on the four-hour time frame, indicating that traders are largely optimistic about its short-term performance.
However, at press time, Open Interest (OI) for SOL shows a minor 1% decrease, currently sitting at $2.42 billion, still confirming investor confidence.
Despite recent bearish conditions, Solana’s strong ecosystem and adoption prospects, especially with the anticipated mainnet launch of Firedancer by Jump Crypto in early 2025, highlight its long-term potential.
Solana price prediction
Currently, SOL is traded at $153.84, struggling to break through the $155 resistance level.
Solana's critical support level is currently at $141, and a breach below this level could trigger a sharper decline, possibly confirming a double-top pattern. However, if SOL can maintain its momentum, it could reach $165, where an inverted head-and-shoulders pattern signals a potential breakout.
If Solana breaches the $165 neckline, the price could rally toward $185 in the coming days. Despite recent fluctuations, trader sentiment remains bullish.
However, failure to maintain key levels could lead to a prolonged downtrend. A break above $160 would be necessary to invalidate the double-top pattern and sustain the upward trend.