- An analyst predicted that SOL will hit 3.17x in the short to mid-term.
- Traders with high-leverage short positions may be liquidated.
Captain Faibik, a technical analyst, posted on X (formerly Twitter) that the price of Solana [SOL] might be on its way to $333.
From the chart Faibik shared, SOL had broken out of a descending triangle. This means that the trend of the token was no longer bearish.
The post also showed the trajectory for Solana going forward would be nothing but upward.
$SOL #Solana is Road to the $333 📈 pic.twitter.com/6FXD3FSKyQ
— Captain Faibik (@CryptoFaibik) January 30, 2024
At press time, SOL’s price was $105.65, CoinMarketCap showed. This value indicated that the cryptocurrency has increased by 8.90% in the last 24 hours.
The trading volume surged to $3.14 billion within the same period, indicating high interest in the token.
If SOL surges to $333 as Faibik mentioned, it would mean that the value would have increased by 3.17x. But can SOL reach that price within a short timeframe?
The path looks clear for longs
AMBCrypto wanted to evaluate the possibility. Therefore, we considered checking the Liquidation Heatmap provided by HyblockCapital.
The Liquidation Heatmap allows traders to identify regions where there is high liquidity.
In checking some areas, traders can predict where liquidation events might occur. At press time, our analysis of the indicator showed that traders who decide to long SOL might have no issue getting liquidated.
However, if a trader decides to short the token and target the $82 to $85 range, the position could be wiped out.
While those with low leverage could be spared, open short positions with 25x to 100x leverage risked losing their funds.
Source: HyblockCapital
At the same time, this does not guarantee SOL’s jump to $333. But the plot above confirmed that the Solana native token might easily cross $115 within a short period.
If SOL crosses $115, there is a high chance that the price action might continue moving forward. In a recent article, AMBCrypto reported how some analysts predicted that SOL would hit $140.
With the current state of the token, it looks like the target could become a reality sooner rather than later.
Open Interest reinforces the bullish thesis
In terms of the Open Interest (OI), Coinglass showed that it had increased to $1.26 billion. The OI is the value of all open contracts. It increases or decreases depending on net positioning.
When the OI increases, it means that participants are increasing their positioning, However, a decline in the OI suggests that liquidity is moving out of contracts connected to the cryptocurrency.
Source: Coinglass
Is your portfolio green? Check out the SOL Profit Calculator
Concerning Solana’s price, the increasing OI might serve as a strength for the upward movement. If the price continues to increase alongside the OI, then SOL might jump 50% over the forthcoming weeks.
However, the price action could experience pullbacks in the process.