Solana has started a slight correction after crossing the $200 mark: Crypto Analysis of March 21, 2024

After starting a rally up to $200, Solana then underwent a corrective phase of about 20%. Let’s examine the upcoming outlook for SOL’s price.

Solana (SOL) Status

After crossing the $100 threshold again, Solana saw a 112% increase. Indeed, in less than a month, its price more than doubled. The bullish hypothesis proposed in the analysis of February 29 has therefore materialized. Solana’s price precisely reached a peak at $210. While it was only $50 short of its all-time high (ATH), SOL began a bearish movement, taking it below the 78.6% Fibonacci retracement level, calculated from the ATH.

The Solana price marked a new low at $160 and is trading, at the time these lines are written, around $190. Thus, the cryptocurrency seems to be experiencing a renewed interest from buyers. It is interesting to note that this phenomenon took place upon contacting the value area identified around $170. Solana remains well above its 50 and 200-day moving averages, although its momentum has naturally been revised downward, as confirmed by the oscillators.

The current technical analysis was carried out in collaboration with Elie FT, an investor and trader by passion in the cryptocurrency market. Today, a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and mutual assistance around financial markets in a professional and warm atmosphere.

Focus on Solana Derivatives (SOLUSDT)

We can observe that the open interest of SOL/USDT contracts has evolved in the same way as its price. This suggests that speculators have been primarily oriented towards buying. This hypothesis could be confirmed by more pronounced buy liquidations recently than sell ones. Furthermore, we can note that the funding rate has significantly decreased following Solana’s recent drop, suggesting a slowdown in buyer interest.

The heat map of SOL/USDT liquidations over a month shows that the cryptocurrency recently rebounded on a subtle liquidations zone around $165. Although we can identify less significant liquidation zones around $200, it appears that the most significant liquidation zone is located within a price range between $160 and $150. The approach of the price towards these levels could trigger a massive execution of orders, thus increasing the risk of a period of increased volatility for Solana. These zones therefore represent a critical point of interest for investors.

Potential Scenarios for Solana’s Price (SOL)

• If Solana’s price manages to stay above $170, we could anticipate a bullish continuation up to the $210 level. The next resistance to consider, if the bullish movement continues, could be its all-time high of $266. At this stage, this would represent an increase of over 39%.

• If Solana’s price fails to maintain above $170, we could envisage a return to $160 or even $150. The next support to consider, if the bearish movement continues, would be around $130. At this stage, this would signify a drop of less than -30%.

Conclusion

Solana’s recent trajectory, marked by an impressive rally up to $210 followed by a correction, illustrates the volatility and ongoing appeal of this cryptocurrency in the market. Despite a corrective phase, the notable support above the moving averages and the renewed buyer’s interest around $190 demonstrate the resilience of Solana. However, it will be crucial to pay close attention to the price’s reaction to the various key levels to confirm or invalidate the current assumptions. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, remember that these analyses are based solely on technical criteria, and cryptocurrency prices can also change rapidly based on other more fundamental factors.