Bullish recovery of Solana underway? Crypto Analysis of June 5, 2024

After a slight bearish retracement, Solana seems to be gaining strength again. Let’s examine the outlook for SOL’s price.

Solana’s Situation (SOL)

After reaching a peak at $211, Solana retreated by more than 40%, gradually bringing its price down to around $120. This price level served as support for SOL, allowing for a bullish recovery that brought its price back above $170. Thus, the buying interest for Solana appears ready to continue.

At the time of writing, the Solana price is trading around $173. The medium and long-term trend of Solana remains bullish, as evidenced by the 50 and 200-day moving averages. On the oscillator side, it can be seen that they illustrate, like the price itself, a slight recovery in the cryptocurrency’s bullish momentum.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Live sessions, educational content, and mutual support around the financial markets in a professional and friendly atmosphere.

Focus on Solana Derivatives (SOLUSDT)

The SOL/USDT contracts have evolved in the same way as the cryptocurrency. This suggests that speculators have mostly been oriented towards buying. This hypothesis could be confirmed by funding rates that have significantly increased, showing a price differential between SOL/USDT contracts due to significant buying pressure on these contracts. On the liquidation side, it can be seen that short positions have recently been more pronounced than those of buyers, which should reinforce this bullish conviction.

The liquidation heatmap of SOL/USDT over three months shows that the cryptocurrency recently crossed a liquidation zone just below $170. It seems that this phenomenon led to an upward movement, demonstrating buying interest at this level. Currently, the most significant liquidation zones are found on either side of its current price. Below it, the area around $160 is notable. Above it, the zone between $185 and $195 is also noteworthy. The approach of the price towards these levels could trigger a massive onset of orders, thus increasing the risk of a period of increased volatility for Solana. These zones therefore represent a crucial point of interest for investors.

Hypotheses for Solana’s Price (SOL)

• If Solana’s price maintains above $170, we could anticipate a continued rise to the level of $190 or even $200. The next resistance to consider, should the upward movement continue, could be $210, and beyond that, Solana’s all-time high at $265. At this stage, this would represent an increase of over 50%.

• If Solana’s price fails to maintain above $170, a return to the levels of $145 or even $125 can be envisaged. The next support to consider, should the bearish movement continue, would be at $110. At this stage, this would represent a decrease of less than 37%.

Conclusion

Solana has shown its ability to rebound after a period of decline, finding stable support that encouraged renewed buying strength. The technical indicators and the structure of Solana suggest a continuing positive trend, indicating potential positive fluctuations in the future. However, it will be crucial to closely observe the price’s reaction to various 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’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also quickly evolve due to other more fundamental factors.