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Solana (SOL), the world's fourth-largest cryptocurrency by market capitalization, is poised to continue its upward momentum as on-chain metrics shift in favor of whales. After a sharp price decline, SOL found support at $205.5 and resumed its upward trajectory. It is poised to continue its upward momentum in the coming days.   
<h2 class="wp-block-heading" id="h-solana-sol-bullish-on-chain-metrics-nbsp">Solana (SOL) Bullish On-chain Metrics&nbsp;</h2>   
The on-chain metrics, trading volumes, and traders' rising interest in the altcoin indicate that SOL is poised for short-term upside momentum.   
According to the on-chain analytics firm DefiLlama, traders' interest and liquidity in the SOL chain appear to be rising. Data shows that SOL's daily trading volume has skyrocketed from $2.91 billion on December 7, 2024, to $6 billion on December 11, 2024, reaching its highest level since November 2024.   
Additionally, Coinglass's SOL Long/Short ratio has reached its highest level since the beginning of November 2024. Although it currently stands at 1.05, this notable rise in the long/short ratio indicates strong bullish sentiment among traders.   
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When combining these on-chain metrics, it appears that bulls are back and continue to dominate the asset, supporting the upcoming rally.   
<h2 class="wp-block-heading" id="h-sol-technical-analysis-and-upcoming-level">SOL Technical Analysis and Upcoming Level</h2>   
According to the expert technical analysis, <a href="https://coinpedia.org/price-analysis/is-solana-still-primed-to-launch-a-bullish-attack-to-reach-1000-heres-what-you-need-to-know/">SOL</a> appears bullish as it has successfully retested the crucial support level of $205.   
<figure class="wp-block-image size-large">
 <a href="https://image.coinpedia.org/wp-content/uploads/2024/12/12070159/SOLUSDT_2024-12-12_07-01-41.png"><img src="https://image.coinpedia.org/wp-content/uploads/2024/12/12070159/SOLUSDT_2024-12-12_07-01-41-1024x448.png" alt="" class="wp-image-392030"></a>
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 Source: Trading View
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Based on recent price action and historical momentum, the SOL rally could continue if it breaks through the resistance level at $240. If SOL breaks through this level and closes a daily candle above $241, there is a strong possibility it could soar by 10% to reach $269 in the coming days.   
At press time, SOL is trading near $227 and has registered a price surge of over 7% in the past 24 hours. During the same period, its trading volume dropped by 34% indicating lower participation from traders and investors compared to the previous days.

Solana (SOL) Set For Bull Run, Insights From On-Chain Data

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