The cryptocurrency market is green, Solana records a rebound of 17% in one week. Let's look at the future outlook for SOL price.
Location of Solana (SOL)
After plunging towards $110 following the overall decline in the crypto market, Solana rebounded to mark a new high around $164. Unfortunately, the crypto failed to cross this key level despite several attempts. However, it appears that upward pressure is increasing as SOL price forms higher and higher lows. Indeed, we can note support at $120 and, more recently, that at $133. All of these fluctuations formed an “inverted head-shoulder”, a chart pattern suggesting a possible breakout of resistance.
At the time of writing, Solana's price is trading around $155. Solana thus crossed its annual VWAP as well as its important value zone, both identified at the same level, around $144. The crypto also surpassed its 50-day and 200-day moving averages. Although they are still crossed downward, all of these elements leave room for optimism for a resumption of an upward trend. In terms of Solana's dynamics, it seems to be resuming and being supported upwards, as evidenced by its price as well as its oscillators.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on Solana derivatives (SOLUSDT)
Solana's latest rally was positively correlated with open interest in SOL/USDT perpetual contracts, demonstrating growing speculator interest, primarily in buying. However, the CVD, being stable, shows that selling pressure persists. As for funding rates, these appear positive, illustrating a majority of buyers on crypto perpetual contracts. As for liquidations, they are mostly short, which could indicate a recent capitulation of sellers on Solana's price.
The SOL/USDT contract liquidation heat map reveals that Solana price is just below a significant liquidation zone, located around $163. Above this zone, we can note more subtle liquidations, notably at $174, then higher at $185 and $194. Below the current price, a liquidation zone lies around $144. Finally, further down, we observe a significant liquidation zone below $127. The price approaching these levels could result in a massive triggering of orders, increasing the risk of increased volatility for the crypto. These areas therefore represent a crucial point of interest for investors.
Solana (SOL) Price Forecast
- If the price of Solana remains above $133, we could anticipate a bullish continuation up to the $164 level. The next resistance to watch, if the upward movement continues, could be around $170. Beyond that, we can note the levels of $185 then $194. At this point, that would represent an increase of more than 26%.
- If the price of Solana fails to stay above $133, we could envisage a return towards $126. The next support to watch, if the bearish movement continues, would be $120. Even lower, we can note the support of $110. At this point, that would represent a drop of about 28%.
Conclusion
Solana is showing signs of recovery after a bearish phase, with increasing bullish pressure. Although resistance persists, technical signals and current momentum suggest a potential for an upward reversal, hinting at a possible continuation of the last bullish movement. However, it will be essential to carefully monitor the price reaction at key levels to validate or revise current forecasts. Finally, remember that this analysis is based solely on technical criteria, and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.
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