Solana continues its rise, validating a promising technical breakout. Let’s explore the future outlook for SOL price.
Location of Solana (SOL)
After relying on the support at $133, Solana managed to break through its daily resistance around $164. As specified in the analysis of October 16, this increase allowed the Solana price to position itself above its monthly pivot point, a significant value zone, as well as its annual VWAP. From a charting perspective, Solana's latest price action today forms an inverted head-and-shoulder pattern, which in principle demonstrates bullish reversal potential.
At the time of writing, Solana is trading around $170, a price level corresponding to the first resistance of SOL's monthly pivot points. The cryptocurrency thus validates a medium-term upward trend. However, it will be necessary for the Solana price to continue its momentum to allow the daily moving averages to cross upwards, which would reinforce this idea. On the momentum side of Solana, it is clearly showing a recovery, as evidenced by both its price and 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)
The open interest of SOL/USDT perpetual contracts has been revised upwards, even more than its underlying. This undeniably demonstrates the interest of speculators in crypto. Although this phenomenon is accompanied by a positive funding rate, indicating a majority of buyers on Solana perpetual contracts, it should be noted that the CVD of Solana perpetual contracts has recently been revised downwards. This reveals recently predominant short orders in the market, illustrating some pessimism regarding the near-term future of crypto. Regarding liquidations, we are seeing a spike in liquidations of short positions, which could paradoxically indicate a recent capitulation of sellers on Solana's price.
The SOL/USDT contract liquidation heat map reveals that Solana price recently crossed a significant liquidation zone. This crossing does not seem to have triggered any selling orders which would have weighed on the price, thus suggesting a possible continuation of the upward movement. Currently, notable liquidation zones above the price are around $185 and then $195. Below the current price, an area is identified between $150 and $160. Further down, another area is around $144. Finally, a key area is located below $127. The price approaching these levels could result in a massive triggering of orders, increasing the risk of increased volatility for the cryptocurrency. These areas therefore represent crucial points of interest for investors.
Solana (SOL) Price Forecast
- If the price of Solana remains above $147, we could anticipate a bullish continuation towards the $185 level. The next resistance to watch, if this movement is confirmed, could be around $195. Beyond that, the $200 zone would be a target to consider, representing an increase of more than 19%.
- On the other hand, if Solana fails to stay above $147, a return towards $145 would be possible. If the bearish movement continues, the next support to watch would be around $135. Lower still, we could target the support zone around $127, corresponding to a potential decline of around 24%.
Conclusion
Solana is showing clear signs of recovery with a confirmed medium-term uptrend after breaking through key resistance levels. The appearance of a technical reversal pattern, combined with favorable indicators, reinforces this dynamic, although it is necessary for the asset to maintain its momentum to sustainably confirm this movement. Thus, 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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