Solana Reaches Its Highest Level Since December 2021! Technical Analysis Of November 13, 2024

After breaking through a key resistance, Solana has entered a true expansion phase, exceeding its last peak. Let’s examine the upcoming prospects for the SOL price.

Solana (SOL) Situation

After surpassing its resistance threshold around $163, Solana continued its ascent, reaching $182, signaling a medium-term structural reversal. Subsequently, the crypto retraced over 50% of this increase before embarking on a significant expansion from the level of $155. Thus, Solana recorded a 43% appreciation, peaking at $225, its highest since December 2021.

At the time this text was written, the Solana price is around $212. The cryptocurrency appears to have faced slight selling pressure. Although this may seem concerning, it is important to note that Solana is currently above its monthly and yearly VWAP, as well as several significant value zones. The cryptocurrency’s trend remains bullish in the short, medium, and long term. While this momentum fosters optimism, it is essential to recognize that Solana is gradually moving away from its 50 and 200-day moving averages. This indicates strong bullish momentum, observable in both the oscillators and the price. However, it should be remembered that too intense a movement could precede a significant correction.

The current technical analysis has been conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is an instructor at Family Trading, a community of thousands of active proprietary traders since 2017. There you will find live sessions, educational content, and mutual support around financial markets in a professional and warm atmosphere.

Focus on Solana Derivatives (SOL/USDT)

The open interest on SOL/USDT perpetual contracts has been correlated with Solana’s appreciation, demonstrating a predominantly buying intention from speculators. This trend is confirmed by rising funding rates. However, it is worth noting a persistent selling pressure, observed via the CVD, which has not shown a real recovery upwards. As for liquidations, the latest have been mostly buying, indicating a possible capitulation of buyers in the short term.

The liquidation heatmap for SOL/USDT contracts reveals that a notable liquidation zone has been exceeded from below, located around $213. Unfortunately, this did not attract buyer interest, as the cryptocurrency continued its decline. Currently, the apparent liquidation zones are found below $205, around $200, and more specifically between $195 and $190, as well as between $185 and below $180. Even lower, the area below $155 is also visible. The price approaching these levels could trigger a massive amount of orders, thus increasing the risk of heightened volatility for the crypto. Therefore, these zones represent a crucial point of interest for investors.

Forecast for Solana (SOL) Price

• If Solana’s price remains above $204, we could anticipate a return to $225. The next resistance to consider, if the upward movement continues, could be $243. Beyond that, we can note the cryptocurrency’s ATH at $260. At this point, that would represent an increase of over 22.50%.

• If Solana’s price fails to stay above $204, we could consider a return below $200. The next support to consider, if the downward movement continues, would be slightly below $195. Even lower, we can note support at $185 and possibly $180. At this point, that would represent a decrease of about 15%.

Conclusion

Solana shows a convincing bullish momentum, supported by favorable technical signals. Although the recent selling pressure has dampened its momentum, the prospects remain positive, and the cryptocurrency seems well-positioned to continue its upward trajectory. However, the growing gap with its benchmark levels suggests that a corrective movement could follow, thus calling for caution in the face of potential short to medium-term volatility. Therefore, it will be essential to monitor the price reaction at key levels closely to validate or revise current forecasts. Lastly, 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.