Article Translation:
Source: Coin World Network
As the cryptocurrency market recovers, the price of Solana is at a critical moment. With Bitcoin leading the recovery and the launch of the Solana Seeker phone fueling optimism, SOL has shown a significant upward momentum. However, the SOL/ETH trading pair presents a more complex situation, as Solana faces resistance in surpassing Ethereum (ETH). Ethereum is currently hovering around $2,662 and showing strength against Solana. Can the SOL price reach $200 with a green market and the new phone?
Solana seeks a 35% increase in its struggle against Ethereum
The SOL/ETH price is showing a downward trend as it has fallen below the recent support level of around 0.05600 ETH. The previous resistance level near 0.05900 ETH was clearly rejected, indicating that sellers are in control. The overall trend of SOL/ETH seems to have turned bearish after consolidating for several trading days, failing to further rise.
Economist Alex Kruger warned that as we enter the bull market in 2024, Solana investors should stop paying attention to ETH, as doing so caused Solana’s price to perform poorly in the 2021 bull market.
The chart shows a bearish engulfing candlestick pattern near the top of the 0.05900 ETH range, which is a strong sign of reversal after a previous bullish trend. This adds momentum to the downward trend.
Key support and resistance levels:
0.05900 ETH:
Strong resistance after rejection. The price surged to this level but failed to hold, triggering selling pressure.
0.05800 ETH:
Immediate resistance area, as the top of the recent range before a breakout.
0.05200 ETH:
Immediate support level, focusing on downward predictions and previous lows. This marks a potential target area for the bearish trend.
Although SOL against ETH has performed poorly, SOL price predictions show that the asset against USDT is rising, forming a double bottom bullish reversal pattern with a target of around $165. Further bullish pressure could push SOL price up by 35%, reaching the $200 mark, where the next major resistance level lies.
Derivatives traders prepare to push SOL price to $160
Despite Solana’s price being on par with Ethereum’s, the activity of its futures traders indicates a potential rebound is coming. According to Coinglass liquidation map data, there are more long positions than short positions for Solana, as the cumulative long liquidation leverage is $144 million, while shorts within the daily timeframe are $100 million. This difference is even greater within the weekly timeframe, with longs at $584 million and shorts at $338 million.
This imbalance suggests that bullish sentiment dominates the market, as traders expect Solana’s price to rise.
A deeper analysis of the SOL liquidation chart indicates a large number of buy orders being placed between $140 and $145, suggesting that the price may not easily fall below this support level.
