Solana reaches its all-time high: what to expect? Technical analysis of November 27, 2024

After surpassing its previous high, Solana reached a new all-time high. Let's look at the future outlook for SOL price.

Location of Solana (SOL)

After crossing its resistance threshold around $163, Solana continued its progression until reaching $182, thus signaling a mid-term structural reversal. Subsequently, the cryptocurrency retraced more than 50% of this rise before beginning a significant expansion from the $155 level. Solana then continued its rise, reaching $225, its highest level since December 2021. After a brief consolidation phase, the cryptocurrency continued its ascent to establish a new ATH at $264. The bullish forecast formulated in the analysis of November 13 thus came to fruition.

At the time of writing, Solana's price is around $233. SOL came under selling pressure threatening the cryptocurrency's short-term trend. However, it should be noted that its medium and long-term structure remains clearly oriented upwards. These words can be supported by the fact that the crypto is trading well above its annual VWAP, as well as its 50-day and 200-day moving averages, crossed and trending upwards. In terms of cryptocurrency dynamics, it appears, unsurprisingly, clearly bullish, although recent weakness can be observed. This is reflected in both the price of SOL and its oscillators. While this can be positive, it is important to remember that too much movement can be followed by a significant correction.

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 evolved in line with the price of its underlying, reflecting a relatively healthy market, with speculator interest mainly oriented towards buying. These observations are corroborated by a financing rate which remains positive. However, it should be noted that this has fallen significantly and is accompanied by a clearly downward CVD, suggesting a significant presence of selling interest. As for liquidations, these are mainly buyers, which demonstrates a gradual capitulation of buyers.

The SOL/USDT contract liquidation heat map reveals that a notable liquidation zone has recently been in contact with Solana price. This was around $228 and appears to have resulted in buying interest as the crypto price rebounded to this level. Now, the notable liquidation zones are on either side of the Solana course. Above, we can note the one located around $265. Below, an area is identifiable at $201. Lower still, the area between $195 and $177 is also notable. 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 $229, we could anticipate a return to the cryptocurrency's ATH of $264. The next resistance to consider, if the bullish movement continues, could be around $297, or even reach the psychological threshold of $300. At this point, that would represent an increase of more than 28%.

It is important to note that hitting an all-time high makes it more difficult to identify resistance levels.

• If Solana's price fails to maintain above $229, a decline below $211 to $195 could be considered. If the decline were to continue, interest could arise around $180, although real support is identified lower down, around $155. At this point, that would represent a drop of about 33%.

Conclusion

Solana has experienced marked progress, confirming a medium and long-term upward trend despite recent selling pressure which threatens its short-term momentum. Its general structure remains solid, supported by generally positive dynamics. However, it is essential to keep in mind that a rapid upward movement can be followed by a notable correction. Thus, it will therefore be essential to carefully monitor the price reaction at key levels to validate or revise current forecasts. 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.