Solana: Detailed SOL analysis from now to 2024

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Disclaimer: The following analysis is the sole opinion of the writer and should not be considered investment advice.

  • Solana has reached her three-week tolerance. Can it spark a short-term rally?
  • The altcoin has seen an increase in its funding rate
  • The long/short ratio shows a slight downtrend in the short term

Solana's immediate top SOL in the $34 region has limited buying pressure over the past three weeks. As the bulls struggle to retest this resistance, SOL could present an opportunity in the coming sessions. 

SOL price prediction for 2023-2024

According to observed experience, the reversal of this peak has increased selling pressure in the short term.

Meanwhile, the two-week trendline support has turned to resistance in the four-hour time frame. At press time, SOL is trading at $34.0475 on the price chart. 

SOL has recorded a golden cross, can you keep an uptrend?

Source: TradingView, SOL/USD

The recent reversal of the SOL from the $34 mark pushed the price alternatively towards the standard $32 support. The altcoin's latest bounce from this support marked an ascending channel on the 4-hour chart. 

As a result, SOL has broken through the 20 EMA (red), 50 EMA (cyan) and 200 EMA (green) limits to show a slight upside. The only question is: can he maintain this advantage?

An analysis of previous gold crosses for SOL has revealed more often that these crosses imply a short-term rally.

A break above $34.7 could spark a short-term rally in the coming sessions. Buyers will be looking to push the price towards the $36-$37 levels before a bearish rebuttal is likely.

However, a sustained break below $33.9 will confirm a breakout of the ascending channel. In such a case, a drop below the EMA could cause SOL to retest its first major support in the $32 area.

The moving average convergence divergence (MACD) has held its position above the zero mark to create a buying edge. Buyers should look for a potential downtrend crossover leading to a drop below their balance to gauge bullish bias.

Solana funding interest rates recovery

Source: Emotions

Funding rates have turned positive on Binance in the last 24 hours, according to data from Santiment. In essence, the metric implies that most traders are bullish on the futures market.

However, the price action over the past two days does not reflect this sentiment at press time.

Source: Coinglass

On the other hand, long/short ratio analysis shows a fairly neutral position over the past 24 hours. However, over the past four hours, SOL has shown a bias towards shorter positions.

Finally, SOL's focus on the short-term limit has fueled mixed sentiment among investors. But the triggers and goals will remain the same as discussed above. Importantly, investors/traders should closely monitor the movement of Bitcoin [BTC] to determine its effect on broader sentiment.


Oct 06, 2022

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