Crypto: Solana In Consolidation Phase - Technical Analysis Of September 11, 2024

After initiating a rebound following the recovery of the cryptocurrency market, Solana has finally returned to its support for the sixth consecutive time. Let’s examine the upcoming prospects for the SOL price.

Solana (SOL) Situation

After plunging towards $110 following the overall decline of financial markets, Solana quickly repositioned itself above its identified support around $120. Indeed, the crypto managed to rebound by 48% reaching $164. Unfortunately, this last level served as resistance. Indeed, from this last price level, Solana experienced a decrease down to $120. Fortunately for the crypto, it seems that buying interest has reappeared at this level, underlining its importance as a key level.

At the time of writing, the price of Solana is trading around $135. The recently appeared buying interest in SOL suggests a short-term bullish reversal. However, the medium and long-term bullish trend continues to weaken, fueling uncertainty about its possible continuation. These points can be reinforced by the fact that the crypto is below its 50 and 200-day moving averages, which recently formed a “death cross”. On the side of crypto dynamics, we can see that it is generally revised downwards, although we can note a recent rebound, both from the price of Solana itself and from its oscillators.

The current technical analysis was carried out 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. There, you will find Live sessions, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Focus on Solana Derivatives (SOLUSDT)

Since Solana’s rebound, we have observed a positive correlation between the open interest of SOL/USDT perpetual contracts and its underlying asset. The interest appears to have been primarily bearish, as evidenced by predominantly negative funding rates and decreasing CVD. However, we can note that the latest fluctuations of Solana have been accompanied by a slight increase in CVD and a positive funding rate. In terms of liquidations, we observe as many on the buyer side as on the seller side, without any of them being truly significant.

The liquidation heatmap of SOL/USDT contracts over the past three months reveals that the identified liquidation area around $135 has been crossed. Unfortunately, these areas did not generate significant buying interest, as evidenced by Solana’s continued downward trend. Currently, notable liquidation areas are mainly located above the current SOL price. We can identify areas around $160, $165, and the subtle area near $174. Higher up, we find the $185 area, followed by the one around $195. Below the current price, we can still note the area below $126. The approach of the price to these levels could trigger massive orders, thus increasing the risk of heightened volatility for the crypto. These areas therefore represent a crucial point of interest for investors.

Forecasts for Solana (SOL) Price

• If Solana’s price remains above $120, we could anticipate a bullish continuation up to the $164 level. The next resistance to consider, if the bullish movement continues, could be $190. Beyond that, we can note the last peak at $210. At this stage, this would represent an increase of over 52%.

• If Solana’s price fails to hold above $120, a return to the $110 levels could be envisaged. The next support to consider, if the bearish movement continues, would be slightly below $100. Lower still, we can note the support at $86. At this stage, this would represent a decline of around 38%.

Conclusion

Despite a notable rebound, Solana faces resistance that slows its progression. Although there are signs of a short-term recovery, the medium and long-term trend remains uncertain, with indicators showing a generally weakened dynamic. Therefore, it will be essential to closely monitor the price reaction to key levels to validate or revise current forecasts. Finally, let’s remind ourselves that these analyses are based solely on technical criteria and that cryptocurrency prices can also change rapidly based on other more fundamental factors.