Solana picks up speed: Crypto Analysis of February 29, 2024.

Solana has caught up with its last correction of around -35%. Let’s look at the future outlook for SOL price.

Location of Solana (SOL)

As mentioned in the January 18, 2024 analysis, Solana has recently undergone a corrective phase. The latter marked a low point until $82, a level from which the cryptocurrency rebounded to subsequently regain its last peak. Indeed, SOL recorded an increase of more than 57% in one month. It is interesting to observe that this rebound corresponds to the 38.2% Fibonacci retracement taken into account from $21.

At the time of writing, Solana is trading around $130 and appears ready to cross its final peak to reach the 50% Fibonacci level, calculated from its all-time high. Thus, SOL remains above its 50 and 200 day moving averages, which reassures the idea that the cryptocurrency is in an uptrend. Naturally, oscillators, such as the RSI and MACD, have been bouncing and lately settling above their midpoints. This reflects an upward dynamic which seems to be resurfacing again.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around financial markets in a professional and warm atmosphere.

Assumptions for the price of Solana (SOL)

• If the price of Solana manages to stay above $90, we could anticipate a further increase to the threshold of $137 or even $160. The next resistance to consider, if the bullish movement continues, would be $200. At this stage, this would represent an increase close to + 50%.

• If the price of Solana fails to stay above $90, we could envisage a return to $80. The next support to take into account, if the bearish movement continues, would be around $70 or $60. At this point, that would represent a drop close to -54%.

Conclusion

Solana has regained momentum and seems ready to relaunch the rally which has clearly taken it upwards since October 2023. However, it is important to note that the cryptocurrency has recorded an increase of more than 500 % since that date. Thus, each new increase could indirectly make its price more vulnerable. Therefore, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. 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.