Solana's next move: How high can SOL go after the latest hike?

• Following the breakout from the H&S pattern, there is a strong possibility that SOL will reach $190 before November 2024.
• Open interest in SOL rose 18%, suggesting new position creation amid the recent breakout

Solana [SOL]The world's fifth largest cryptocurrency turned bullish following a breakout of a bullish price action pattern. This breakout has not only changed sentiment among investors and traders, but has raised hopes that SOL may soon skyrocket in the coming days.

Solana Technical Analysis and Key Levels

According to AMBCrypto's technical analysis, SOL recently broke out of a bullish inverted head-and-shoulders pattern on the daily time frame. Based on historical data, whenever an asset deviates from this H&S pattern, it tends to skyrocket significantly.

This time, SOL has experienced a long-term bullish breakout and is targeting a higher rally in the coming days

Source: TradingView

Solana's prediction for November 2024

Despite this bullish outlook, SOL's rally may not be straightforward. Some resistance levels may hinder the asset's upward momentum.

If SOL closes a daily candle above the $161 level, there is a strong possibility that it could rise by 18%, reaching the next resistance level of $190 in the coming days.

However, going by the current market sentiment, it seems that SOL may achieve this level before November 2024.

SOL's bullish on-chain metrics

On-chain metrics further support SOL's positive outlook. According to on-chain analytics firm Coinglass, key liquidation levels are currently $156.6 on the downside and $162.5 on the upside, with traders overleveraging these levels.

Source: Coyonglas

According to the data, short sellers placed more than $14.46 million worth of bets at the $162.5 level, believing that the SOL price would not break above it. On the other hand, the bulls placed $36.24 million worth of bets at the $156.6 level, believing that the asset price will not fall below that.

Open interest is growing

So far, open interest in SOL has risen significantly, indicating strong interest from traders following the breakout. In the last 24 hours, its value has increased by 17.8%.

This significant increase in open interest suggests new position creation during this period. Additionally, it marks the highest level since early October 2024.

Source: Coyonglas

In fact, SOL's long/short ratio stood at 1.11 at press time, indicating strong bullish sentiment among traders.

Market sentiment among traders

Combining all these on-chain metrics with technical analysis, it appears that bulls are currently dominating the asset. This could support SOL and help it reach the $190 level in the coming days.

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This bullish view is further supported by the upcoming US presidential election. Historical data shows that October often brings bullish trends in cryptocurrency markets, especially leading up to big events like elections.

This may further sustain Solana's upward momentum.