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Is Solana’s bullish recovery underway? June 5, 2024 Crypto Analysis
After a slight bearish retracement, Solana appears to be regaining strength. Let’s look at the outlook for the price of SOL.
The Solana situation (SOL)
After reaching a peak at $211, Solana retreated by more than 40%, gradually bringing its price down to around $120. This price level served as support for SOL, allowing a bullish recovery that brought its price back above $170. Buying interest in Solana therefore appears poised to continue.
At the time of writing, the Solana price it trades around $173. Solana’s medium- and long-term trend remains bullish, as evidenced by the 50-day and 200-day moving averages. On the oscillator side, they can be seen to illustrate, like the price itself, a slight resumption of the cryptocurrency’s bullish momentum.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a trainer at Family businessa community of thousands of proprietary traders active since 2017. You will find live sessions, educational content and mutual support on the financial markets in a professional and friendly atmosphere.
Focus on Solana Derivatives (SOLUSDT)
SOL/USDT contracts have evolved in the same way as cryptocurrency. This suggests that speculators have been mostly buying-oriented. This hypothesis could be confirmed by the funding rates which have increased significantly, showing a price differential between SOL/USDT contracts due to significant buying pressure on these contracts. On the liquidation side, it can be noted that short positions have recently been more pronounced than buyers, which should strengthen this bullish belief.
The three-month liquidation heatmap of SOL/USDT shows that the cryptocurrency recently crossed a liquidation zone just below $170. It appears that this phenomenon has led to an upward movement, demonstrating buying interest at this level. Currently, the most significant liquidation zones are located on either side of the current price. Below that, the area around $160 is notable. Above it, the zone between $185 and $195 is also noteworthy. The price approaching these levels could trigger a massive influx of orders, thus increasing the risk of a period of increased volatility for Solana. These areas therefore represent a crucial point of interest for investors.
Solana (SOL) Price Assumptions
- If Solana price sustains above $170, we could expect a continued rise to the $190 or even $200 level. The next resistance to consider, if the upward movement continues, could be $210, and beyond this, Solana’s all-time high at $265. At this stage this would represent an increase of more than 50%.
- If Solana’s price fails to stay above $170, a return to $145 or even $125 levels could be expected. The next support to consider, if the bearish movement continues, would be at $110. At this stage, this would represent a decrease of less than 37%.
Conclusion
Solana demonstrated its ability to bounce back after a period of decline, finding stable support that encouraged renewed buying power. Technical indicators and the Solana structure suggest a continuing positive trend, indicating potential positive fluctuations in the future. However, it will be crucial to closely observe the price reaction at various key levels to confirm or disprove current assumptions. It is also important to remain vigilant against potential “fake outs” and market squeezes in every scenario. Finally, let us remember that these analyzes are based exclusively on technical criteria and that cryptocurrency prices can evolve rapidly also due to other more fundamental factors.
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Family business
Family Trading is a community of traders active since 2017 that offers Lives, educational content and contacts with the financial markets, not celuting cryptocurrencies with their friends Elie FT, passionate investor and trader on the cryptocurrency market.
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