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Solana price increased by 19% last week and achieved the highest gains among the top five cryptocurrencies by market value over the past seven days. Daily chart price movements reveal the formation of a bullish flag pattern, indicating a potential further increase in the altcoin’s value.
What’s Happening with Solana?
A bullish flag pattern forms after a strong upward price movement followed by a consolidation period resembling a small symmetrical triangle. This model indicates that buyers are potentially pausing temporarily before continuing the upward trend. At the time of writing, SOL price is trading at $160 and appears ready to break above the flag’s upper trend line. Investors typically look for a breakout above the flag’s upper trend line as a signal to enter a long position.
Additionally, SOL’s Chaikin Money Flow (CMF) is in an upward trend and currently stands above the zero line. This indicator measures the money flow into and out of an asset. A CMF value above zero is a sign of market strength, indicating high buying pressure and surpassing selling activity.
Investors interpret a positive CMF, especially during periods of price increases like this, as a harbinger of a continuous price rise.
Notable Details for SOL
Solana’s increasing open interest in futures confirms the bullish sentiment towards the altcoin. At the time of writing, the cryptocurrency’s futures open interest increased by 18% over the past seven days, reaching $2.19 billion.
An asset’s futures open interest represents the total number of outstanding futures contracts. When it rises, it means more investors are entering new positions. If this trend continues, SOL will break above the upper line of the bullish flag pattern, trade at $164.51, and rise towards $170.
However, if market sentiment shifts from bullish to bearish, SOL’s value could drop to $154.22 and remain in this pattern for a while.
