As the cryptocurrency market experiences a resurgence, Solana price finds itself at a pivotal moment. With Bitcoin leading the charge in recovery and the launch of the Solana Seeker mobile fueling optimism, SOL has shown significant upward momentum. However, the SOL/ETH trading pair presents a more complex picture, with Solana facing resistance in its bid to outpace Ethereum (ETH), which is currently hovering around $2,662 and showing strength against Solana. Can SOL price capitalize on green markets and a new phone to reach $200?
Solana Price Seeks 35% Gains Amid Struggle With Ethereum
The SOL/ETH price shows a downtrend as it has broken below the recent support level of around 0.05600 ETH. There is a clear rejection from the previous resistance near 0.05900 ETH, suggesting sellers are in control. The overall trend for SOL/ETH seems to have shifted to bearish after consolidating for several sessions and failing to push higher.
Economist Alex Kruger has warned that going into the 2024 bull run, Solana investors should stop focusing on ETH, as doing so caused the Solana price to record dismal gains in the 2021 bull run.
Ironically $SOLETH is barely up in 2024, and SOL’s performance has been lackluster on a risk adjusted basis (Sharpe ratio ~ 0.7 since Jan 1st).
Sol Maxis would do well in focusing on Solana and stop comparing with Ethereum. Eth Maxis did just that in 2021, and it did not end… pic.twitter.com/mrsbr2nr6w
— Alex Krüger (@krugermacro) September 23, 2024
The chart shows a bearish engulfing candle pattern near the top of the range at 0.05900 ETH, which is a strong indication of a reversal after the prior bullish movement. This adds weight to the downside momentum.
Key Support and Resistance Levels:
0.05900 ETH: Strong resistance after the rejection. Price spiked to this level but failed to hold, triggering a selloff.
0.05800 ETH: Immediate resistance zone, acting as the top of the recent range before the breakdown.
0.05200 ETH: Immediate support, highlighted by the downside projection and previous lows. This marks a possible target zone for the bearish move.
Solana Price Analysis Chart
Despite the dismal performance against Ethereum, SOL price prediction shows the asset is gaining against USDT, forming a double-bottom bullish reversal pattern with a measure move target around $165. Further bullish pressure could increase SOL price by 35% to hit the $200 mark, where the next major resistance is located.
Derivative Traders Preparing to Launch SOL Price to $160
While Solana price struggles against the Ethereum price, their Futures traders’ activity suggests a potential rally is coming. According to the Coinglass Liquidation Map data, there are more Solana Longs than Shorts as the cumulative long liquidation leverage is $144 million, compared to $100 million for shorts on the daily time frame. This discrepancy is larger on the weekly timeframe, with $584 million long versus $338 million short.
This imbalance suggests bullish sentiment dominates the market since traders anticipate Solana price will trend higher.
A deeper analysis of the SOL liquidation map shows a huge amount of buy orders have been placed between $140 and $145, meaning that the price may not easily break below this support level.
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