Technical Analysis

Solana rises 52% in two weeks

Published: Nov 19, 2024

Solana’s recent 52% price surge has caught the market’s attention, with resistance at $260 and funding rates rising. Let’s explore SOL’s price momentum and the key levels to watch.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

SOL's Open Interest is also at record highs in USD value. This is mostly due to the rising price of SOL; however, open interest by the number of coins is also at highs.
SOL's Funding Rate is also kicking higher. It's not quite as overheated as it was a week ago, but it's up, and it's moving in that direction. If this increases more substantially, then it's possible we will see a leverage flush out.

SOL funding rate:

5. A chart detailing Solana price trends with OI-weighted funding rate data, showcasing key patterns and market dynamics.

Technical analysis

As we expected and called for the bullish pennant to use the horizontal support of $103 to bounce from, the price broke out of the pennant to the upside.
Price has now increased by 52% in just less than 2 weeks. This is a large move in a short period of time.
Price is currently quite overheated, and we can see this in the RSI, which has put in a bearish divergence (higher high in price, lower high on the oscillator) in overbought territory.
The area between $245 and $260 is a resistance area for price.
If there is a price pullback, we'd expect $203 to $220 to act as a major support zone.

6. Solana price analysis chart highlighting critical resistance and support levels, RSI indicators, and recent upward price movements.

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Cryptonary's take

Price has made a mega move over recent weeks, and indicators are overheated here, so we wouldn't be surprised to see a pullback because of this. However, because the market is in a bull phase, we wouldn't look to sell our SOL here, even with the intention of buying back cheaper. It's very possible the market will continue to rip despite these overextended conditions. Therefore, we remain in all Spot positions.