Solana
Solana’s bullish recovery in progress? Crypto analysis for June 5, 2024
After a slight bearish retracement, Solana seems to be regaining strength. Let’s take a look at the SOL price outlook.
The situation of Solana (SOL)
After peaking at $211, Solana fell by more than 40%, gradually bringing its price down to around $120. This price level served as support for SOL, enabling a bullish recovery that brought its price back above $170. So, buying interest in Solana looks set to continue.
At the time of writing, the Solana Price is trading around $173. Solana’s medium to long term trend remains bullish, as evidenced by the 50 and 200 day moving averages. As for the oscillators, we see that they illustrate, like the price itself, a slight resumption of the upward dynamic of the cryptocurrency.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. He is now a coach at Family businessa community of thousands of proprietary traders active since 2017. You will find Live sessions, educational content, and mutual support around 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 predominantly buying. This hypothesis could be confirmed by funding rates that have increased significantly, showing a price differential between SOL/USDT contracts due to significant buying pressure on these contracts. On the liquidation side, we see that short positions have recently been more pronounced than those of buyers, which should reinforce this bullish conviction.
The three-month SOL/USDT liquidation heat map shows that the cryptocurrency recently broke through a liquidation zone just below $170. It seems that this phenomenon has led to an upward movement, demonstrating buying interest at this level. Currently, the largest liquidation zones are on either side of its current price. Below that, the area around $160 is notable. Above, the area between $185 and $195 is also notable. The price approaching these levels could trigger a massive influx of orders, increasing the risk of a period of heightened volatility for Solana. These areas therefore represent a crucial point of interest for investors.
Assumptions for the price of Solana (SOL)
- If Solana price sustains above $170, we could expect a continued rise to the $190 level or even $200. The next resistance to consider, if the upward move continues, could be $210, and beyond that, Solana’s all-time high at $265. At this point, that would represent an increase of more than 50%.
- If the price of Solana fails to maintain above $170, a return to the levels of $145 or even $125 can be considered. The next support to consider, if the bearish movement continues, would be at $110. At this point, that would represent a drop of less than 37%.
Conclusion
Solana showed the ability to bounce back from a period of decline, finding stable support that encouraged renewed buying strength. Solana’s technical indicators and structure suggest a continued positive trend, indicating potential positive fluctuations in the future. However, it will be crucial to closely observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant for possible market “falsification” and “squeezes” in each scenario. Finally, remember that these analyzes are based solely on technical criteria and that the prices of cryptocurrencies can also change quickly due to other more fundamental factors.
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Family business
Family Trading is a Community of own-account traders active since 2017 offering Lives, educational content and mutual assistance around the financial markets including that of cryptocurrencies with Elie FT, a passionate investor and trader on the crypto market.
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