Solana (SOL) loses speed: Crypto Analysis of January 18, 2024
Solana has marked a new yearly high before entering a correction phase. Let’s examine the upcoming outlook for SOL’s price.
![Logo Solana encadré par une loupe avec en fond un graphique en couleur ainsi qu’un taureau et un ours blanc.](https://www.cointribune.com/app/uploads/2023/09/Image-cointribune-24-1024x683.png)
Current Situation of Solana (SOL)
After reaching a new peak at $126, Solana ended the year 2023 in a corrective phase. Indeed, it was from that level that the price of Solana fell back below $115. This price corresponds to the 38.2% Fibonacci retracement level from Solana’s all-time high (ATH). This threshold had been a significant resistance in the analysis of November 15, 2023. Currently, SOL appears to be in a consolidation phase, taking the form of a downward range. The lowest point of this range is at $85, while its most recent high point is at $107.
At the time of writing, Solana is trading just around $100. It is maintaining above its 50- and 200-day moving averages, signaling a bullish trend. Oscillators, such as the RSI and MACD, are situated above the median threshold. However, a notable divergence between these oscillators and the price of Solana may indicate a possible weakening of momentum, which could lead to a potential period of consolidation or decrease ahead.
The current technical analysis has been conducted in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Now a trainer at Family Trading, a community of thousands of independent traders active since 2017. There you will find Live sessions, educational content, and mutual assistance regarding the financial markets in a professional and friendly atmosphere.
Focus on Solana Derivatives (SOLUSDT)
The SOL/USD liquidation heatmap over 1 month highlights four zones. Two above the price, which are $107 and $117, and two below the price, which are $93 and $78. As the market approaches these levels, we could witness a massive triggering of orders, which would potentially increase the cryptocurrency’s volatility. These zones therefore represent major points of interest for investors.
Possible Scenarios for Solana’s Price (SOL)
If the price of Solana manages to hold above $80, we could anticipate a new rise to the $115 threshold. The next resistance to consider, if the bullish movement continues, would be $125 or even $137. At this stage, this would represent a rise close to +38%.
If the price of Solana fails to hold above $80, we could envisage a return to $70. The next support to consider, if the bearish movement continues, would be around $60. At this stage, this would represent a decrease close to -39%.
Conclusion
After numerous consecutive rises and increasingly higher peaks, Solana has finally reached a level under which it seems to be stabilizing. Could this decline in momentum threaten Solana’s price? To answer this, it will be crucial to closely monitor the price’s reaction to various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant to potential “fake outs” and market “squeezes” in each scenario. Moreover, it is essential to consider that these analyses are based solely on technical criteria. However, it should be remembered that the price of cryptocurrencies can also evolve rapidly due to other more fundamental factors.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.
The contents and products mentioned on this page are in no way approved by Cointribune and should not be interpreted as falling under its responsibility.
Cointribune strives to communicate all useful information to readers, but cannot guarantee its accuracy and completeness. We invite readers to do their research before taking any action related to the company and to take full responsibility for their decisions. This article should not be considered as investment advice, an offer, or an invitation to purchase any products or services.
Investment in digital financial assets carries risks.
Read more