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

• Solana was holding at $154 after a 6% rise.
• Whale activity and social dominance are up, but the short position ratio of 51.96% indicates caution in the market.

Solana [SOL] witnessed an impressive upward trajectory, earn More than 6% this week even as the altcoin closed above its previous weekly high, sparking optimism among market participants.

As of writing, the altcoin is consolidating at $154, building bullish momentum. Many analysts believe this is the calm before the storm, as SOL is close to testing the key $160 resistance level.

Solana whales are moving

One of the main factors driving Solana's upside is whale activity. AMBCrypto's analysis on Santiment data indicated that whales with more than 5 million SOL held 56.80% of the supply at press time.

This increased participation by large shareholders is usually viewed as a positive signal for upward price movement.

Source: Santiment

Social cues push Solana to the forefront

Social media buzz added to the above market sentiment, with Solana leading the pack. The social dominance of the altcoin jumped to 3.72%, indicating the massive interest the altcoin is attracting.

In most cases, this rise in social chatter indicates growing interest from both retail and institutional investors alike, supporting a bullish breakout.

Source: Santiment

The Bears are gaining control a little bit

Despite the positive outlook, Solana's long/short ratio is very conservative. According to Coinglass, 51.96% of market participants were shorting the coin at press time, an indication of significant market uncertainty.

This may mean that while the majority are optimistic about Solana's future, there are still concerns about his ability to break the $160 resistance level.

Source: Coinglas

Read Solana's book [SOL] Price forecasts 2024-2025

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

However, the fact that more than half of market participants are still holding short positions shows that caution is still required.