Solana continues its rise and confirms a promising technical breakthrough. Let’s examine the future outlook of the SOL price.
Location of Solana (SOL)
After relying on support at $133, Solana was able to break through its daily resistance around $164. As noted in the October 16 analysis, this increase allowed Solana’s price to move above its monthly pivot point, a significant value zone, as well as its annual VWAP. From a charting perspective, Solan’s latest price action today forms an inverted head and shoulders pattern that basically demonstrates bullish reversal potential.
At the time of writing, Solana is trading around $170, the price level corresponding to the first resistance of the monthly SOL pivot points. The cryptocurrency thus confirms the medium-term upward trend. However, it will be necessary for the price of Solana to continue its momentum to allow the daily moving averages to be crossed to the upside, which would reinforce this idea. On the momentum side, Solana is clearly showing a recovery as evidenced by both its price and its oscillators.
The current technical analysis was done in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, coach v Family businessa community of thousands of traders on their own account active since 2017. Here you will find lives, educational content and mutual help in the financial markets in a professional and warm atmosphere.
Focus on Solana Derivatives (SOLUSDT)
The open interest of SOL/USDT standing contracts was revised upwards, even more than its underlying. This undeniably proves the interest of speculators in cryptocurrencies. Although this phenomenon is accompanied by a positive funding rate, which indicates that most buyers of Solana perpetual contracts, it should be noted that the CVD of Solana perpetual contracts has recently been revised downwards. This reveals recently prevalent short orders in the market, illustrating some pessimism about the near future of cryptocurrencies. In terms of liquidations, we are seeing a sharp increase in short liquidations, which could paradoxically indicate a recent capitulation of sellers on the Solana price.
The liquidation heat map of the SOL/USDT contract shows that the Solana price has recently crossed a significant liquidation zone. This cross does not appear to have triggered any sell orders to weigh on the price, suggesting a possible continuation of the upward move. There are currently notable liquidation zones above around $185 and then $195. An area between $150 and $160 is identified below the current price. Further down is another area around $144. Finally, a key area is located below $127. A price approaching these levels could lead to massive order triggering, increasing the risk of increased volatility for the cryptocurrency. These areas therefore represent crucial points of interest for investors.
Solana (SOL) Price Prediction
- If the price of Solana remains above $147, we could expect a bullish continuation towards the $185 level. The next resistance to watch if this move is confirmed could be around $195. Additionally, the $200 zone would be a target to consider, representing an upside of over 19%.
- On the other hand, if Solana fails to hold above $147, a return to $145 would be possible. If the bearish movement continues, the next support to watch will be around $135. Even lower, we could target the support zone around $127, which corresponds to a potential downside of around 24%.
Conclusion
Solana is showing clear signs of recovery with a confirmed mid-term uptrend after breaking key resistance levels. The emergence of a technical reversal pattern combined with favorable indicators reinforces this momentum, although it is necessary for the asset to maintain its momentum to permanently confirm this move. Therefore, it will be necessary to closely monitor the price reaction at key levels in order to verify or revise current forecasts. Finally, remember that this analysis is based solely on technical criteria and that the price of cryptocurrencies can evolve rapidly depending on other more fundamental factors.
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