Solana: Assessing whether SOL can successfully cross the $160 level

• Solana rallied 6% to $154.
• Whale activity and social dominance increased, but a 51.96% short position ratio suggested market caution.

Solana [SOL] has witnessed an impressive bullish run, gaining over 6% this week. The altcoin even closed above the previous weekly high, boosting optimism among market participants.

At the time of writing, the altcoin was consolidating at $154, creating bullish momentum. Many analysts believe this is the calm before the storm, as SOL inches closer to testing the key $160 resistance level.

Humpback whales

One of the key factors behind Solana's bullish run is whale activity. AMBCrypto analysis on Santiment data indicates that whales holding more than 5 million SOL own 56.80% of the supply at press time.

This increased involvement of large holders is generally seen as a positive sign for an upward price movement.

Source: Sandhi

Social reference pushes Solana to the fore

Social media buzz added to the said market sentiment, with Solana leading the pack. The altcoin's social dominance jumped to 3.72%, indicating the huge attention the altcoin attracts.

In most cases, this increase in social chatter signifies increased interest from both retail investors and institutions, supporting a bullish breakout.

Source: Sandhi

Bears are gaining some control

Despite the positive outlook, Solana's long/short ratio is extremely conservative. According to Coinglass, 51.96% of market participants were going lower at press time, an indication of high skepticism in the market.

This could mean that while most are optimistic about Solana's future, there are concerns about its ability to break the $160 resistance.

Source: Coyonglas

Read Solana [SOL] Price Forecast 2024-2025

As whales become more active and socially dominant, Solana appears poised for further growth.

However, the fact that more than half of market participants are still short shows that caution is still in order.