Solana began a slight correction after crossing $200: Crypto Analysis of March 21, 2024.

After beginning a rally to $200, Solana then underwent a corrective phase of around 20%. Let’s look at the future outlook for SOL price.

Location of Solana (SOL)

After crossing the $100 threshold again, Solana saw a 112% surge. In fact, in less than a month, its price has more than doubled. The bullish hypothesis proposed in the analysis of February 29 has therefore materialized. Solana price precisely peaked at $210. While it was only $50 away from its all-time high (ATH), SOL began a bearish movement, bringing it below the 78.6% Fibonacci retracement threshold, calculated from the ATH.

Solana price marked a new low at $160 and is trading, at the time of writing, around $190. Thus, cryptocurrency seems to be attracting renewed interest from buyers. It is interesting to observe that this phenomenon took place in contact with the value zone identified around $170. Solana remains well above its 50-day and 200-day moving averages, although its momentum has naturally been revised downward, which the oscillators confirm.

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)

We can observe that the open interest of SOL/USDT contracts has moved in the same way as its price. This suggests that speculators were mainly biased towards buying. This hypothesis could be confirmed by recent liquidations of purchases that are more marked than those of sales. Additionally, we can see that the financing rate has fallen significantly following the recent decline in Solana, suggesting a slowdown in buyer interest.

The SOL/USDT one-month selloff heat map shows that the cryptocurrency has recently bounced into a zone of subtle selloffs around $165. Although we can identify less marked liquidation zones around $200, it seems that the most significant liquidation zone is located in a price range between $160 and $150. Price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for Solana. These areas therefore represent a crucial point of interest for investors.

Assumptions for the price of Solana (SOL)

• If the price of Solana remains above $170, we could anticipate a bullish continuation up to the $210 level. The next resistance to take into account, if the bullish movement continues, could be its all-time high, $266. At this point, that would represent an increase of more than 39%.

• If the Solana price fails to stay above $170, we could envisage a return to $160 or even $150. The next support to take into account, if the bearish movement continues, would be around $130. At this point, that would represent a drop of less than -30%.

Conclusion

Solana’s recent trajectory, marked by an impressive rally to $210 followed by a correction, illustrates the cryptocurrency’s continued volatility and market appeal. Despite a corrective phase, the notable support above the moving averages and renewed buying interest around $190 demonstrate Solana’s resilience. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.