Solana firmed at $154 after rising 6%. Although whale activity and social dominance increased, the short position ratio of 51.96% signaled market caution.
Solana (SOL) has had an impressive bullish run, rising over 6% this week. Altcoins closed above last week’s highs, sparking optimism among market participants.
At the time of writing, the altcoin is holding steady at $154 and gaining bullish momentum. Many analysts believe this is the calm before the storm, as SOL is inching closer to the key resistance test at $160.
Source: TradingView
Solana whale on the move
One of the main factors driving Solana’s bull market is whale activity. Analysis of Santiment data by AMBCrypto shows that whales with over 5 million SOL at the time of writing own 56.80% of the supply.
This increased involvement by large holders is usually seen as a positive sign of price appreciation.
Source: Santiment
Social mentions push Solana to the forefront
Social media buzz also fueled the aforementioned market sentiment, with Solana leading the pack. The social dominance of altcoins has jumped to 3.72%, which shows that altcoins are attracting a lot of attention.
In most cases, this increase in social chatter means increased interest from both retail and institutional investors, confirming a bullish breakout.
Source: Santiment
The bears are gaining a slight lead.
Despite the positive outlook, Solana’s long/short ratio is very conservative. According to Coinglass, 51.96% of market participants were short at the time of writing, indicating high skepticism in the market.
This could mean that while the majority is optimistic about Solana’s future, there are still concerns about its ability to break through the $160 resistance.
Source: Coinglass
Read Solana (SOL) price prediction for 2024-2025
Solana is expected to gain further momentum as whales become more active and socially dominant.
However, the fact that more than half of market participants still hold short positions shows that vigilance is still needed.
