After breaking through a key resistance, Solana achieved a real expansion phase crossing its last peak. 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 crypto retraced more than 50% of this rise before beginning a significant expansion from the $155 level. Solana thus recorded an appreciation of 43%, peaking at $225, its highest since December 2021.
At the time of writing, Solana’s price is around $212. The cryptocurrency appears to have come under slight selling pressure. While this may seem concerning, it is worth noting that Solana currently sits above its monthly, annual VWAP, as well as several areas of significant value. The cryptocurrency trend remains bullish in the short, medium and long term. While this momentum fuels optimism, it is important to note that Solana is gradually moving away from its 50-day and 200-day moving averages. This demonstrates strong bullish momentum, perceptible both in the oscillators and in the price. However, it is worth remembering that too intense a move could precede 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 (SOL/USDT)
Open interest in SOL/USDT perpetual contracts was correlated with Solana's appreciation, demonstrating a predominantly buying intent on the part of speculators. This trend is confirmed by increasing financing rates. Nevertheless, it is worth noting persistent selling pressure, observed via the CVD, which has not shown any real upward recovery. As for the liquidations, the last ones were predominantly long, indicating a possible capitulation of buyers in the short term.
The heatmap of SOL/USDT contract liquidations reveals that a notable liquidation zone has been breached from below, located around $213. Unfortunately, this did not generate any buying interest as the cryptocurrency continued its decline. Currently, the apparent liquidation zones are below $205, around $200, and most notably between $195 and $190, as well as between $185 and below $180. Further down, the area below $155 is also visible. 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 $204, we could anticipate a return to $225. The next resistance to consider, if the upward movement continues, could be $243. Beyond that, we can note the ATH of the crypto at $260. At this point, that would represent an increase of more than 22.50%.
- If the price of Solana fails to stay above $204, we could envisage a return below $200. The next support to consider, if the bearish movement continues, would be slightly below $195. Lower still, we can note the support of 185 or $180. At this point, that would represent a drop of about 15%.
Conclusion
Solana shows convincing bullish momentum, supported by favorable technical signals. Although recent selling pressure has dampened its momentum, the outlook remains positive, and the cryptocurrency appears well positioned to continue its advance. However, the growing gap with its reference levels suggests that a correction could follow, thus calling for caution in the face of possible volatility in the short to medium term. 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.
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