Overhead Supply Threatens for 20% Drop

Solana Price Prediction: The Solana coin was one of the peak performers during the ‘Uptober rally.’ Starting from its low point of $20.98 on October 12th, the coin has surged by an impressive 120%, reaching a high of $47. However, given the current uncertainties in the broader cryptocurrency market, Can SOL maintain its upward momentum into November?

Also Read: SOL Price Jumps to 14-Month High As Solana Dodges FTX Unstaking

Will SOL Price Lose $40 Mark?

• In an established recovery, the potential correction in SOL price could assist buyers in recuperating bullish momentum.
• The coin buyers can find suitable support at $37.6 and $27.4
• The 24-hour trading volume on the Solana coin is $2.43 Million, indicating a 35% loss.

Source-Tradingview

The recent surge in Solana price encountered a significant obstacle around the $48 mark. On November 1st, the daily chart displayed a rejection candle with a long tail, indicating that short-term traders might be locking in their profits. 

This influx of selling pressure has pushed the coin price down to $39, suggesting the potential for a fresh correction. But how long might this correction last?

Analyzing historical data, we observe that the Solana price recovery in 2023 has experienced two corrections. The first one occurred from February to mid-June, while the second was from July to September. Using Fibonacci Retracement Levels as a guide, the first correction retraced to 78.6% FIB, while the second retraced to 61.8% FIB. 

Considering the current strong bullish momentum, it’s possible that the altcoin may retrace to the 38.2% FIB level, approximately at the $32 price level, before potentially moving down to the 50% retracement level around $27.5. 

If SOL manages to maintain its position above these levels, it could pave the way for a post-correctional rally that surpasses the monthly barrier at $48.38.

SOL vs BTC Performance

Source: Coingape| Solana Vs Bitcoin Price

Examining the last six months, the SOL price performance clearly demonstrates its outperformance compared to the leading cryptocurrency, BTC. While the Bitcoin price shows a steady but gradual recovery, the Solana coin exhibits parabolic growth, making it an attractive asset for aggressive traders

• Vortex Indicator: A wide gap between VI+ (blue) and VI- (orange) slopes in a bullish crossover state, reflecting the prevailing uptrend sentiment.
• Exponential Moving Average: The 20 EMA shows a rising slope hovering around the $32 mark, providing additional support in case of a pullback.