Solana Reaches Its All-time High: What To Expect? Technical Analysis Of November 27, 2024

After surpassing its previous peak, Solana has reached a new all-time high. Let’s examine the upcoming prospects for the price of SOL.

Situation of Solana (SOL)

After breaking through its resistance level around $163, Solana continued its ascent reaching $182, thus signaling a medium-term structure reversal. Subsequently, the cryptocurrency retraced more than 50% of this rise before embarking on significant expansion from the level of $155. Solana then continued its progression, reaching $225, its highest level since December 2021. After a brief consolidation phase, the cryptocurrency continued its ascent to establish a new ATH at $264. The bullish forecast formulated in the analysis of November 13 has thus materialized.

At the time these lines are being written, the price of Solana is around $233. The SOL has faced selling pressure threatening the short-term trend of the cryptocurrency. However, it is worth noting that its medium and long-term structure remains clearly upward. These statements can be supported by the fact that the crypto is trading well above its annual VWAP, as well as its 50 and 200-day moving averages, which are crossed and oriented upwards. On the cryptocurrency’s momentum side, it appears, unsurprisingly, clearly bullish, although some recent weakness may be observed. This is reflected in both the price of SOL and its oscillators. Although this could be positive, it is important to remind that an overly intense movement may be followed by a significant correction.

The current technical analysis has been carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

Focus on Solana derivatives (SOLUSDT)

The open interest of SOL/USDT perpetual contracts has evolved in line with the price of its underlying, reflecting a relatively healthy market, with speculative interest mostly skewed to the buy side. These observations are supported by a funding rate that remains positive. However, it should be noted that it has decreased significantly and is accompanied by a CVD clearly oriented downward, suggesting a significant presence of selling interest. On the liquidation side, these are mostly buyers, demonstrating a gradual capitulation of the buyers.

The heat map of SOL/USDT liquidations reveals that a notable liquidation zone has recently come into contact with the price of Solana. This was around $228 and seems to have triggered buying interest, with the crypto price rebounding at this level. Currently, notable liquidation zones can be found on either side of Solana’s price. Above, one can note the one located around $265. Below, a zone is identifiable at $201. Lower still, the zone between $195 and $177 is also noteworthy. The price approaching these levels could trigger a massive order execution, thus increasing the risk of heightened volatility for the crypto. These zones therefore represent a crucial point of interest for investors.

Forecast for the price of Solana (SOL)

• If the price of Solana remains above $229, one could anticipate a return to the cryptocurrency’s ATH at $264. The next resistance to consider, if the bullish movement continues, could be around $297, or even reach the psychological threshold of $300. At this stage, this would represent an increase of over 28%.

It is important to note that reaching a new all-time high makes it more difficult to identify resistance levels.

• If the price of Solana fails to maintain above $229, a pullback below $211 down to $195 could be envisioned. If the decline were to extend, interest could manifest around $180, although the real support is identified lower, around $155. At this stage, this would represent a decrease of about 33%.

Conclusion

Solana has experienced a marked progression, confirming a bullish trend in the medium and long term despite a recent selling pressure that threatens its short-term momentum. Its overall structure remains solid, supported by an overall positive momentum. However, it is essential to keep in mind that a rapid upward movement can be followed by a notable correction. Thus, it will be essential to closely monitor the price’s reaction at key levels to validate or revise current forecasts. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.