Solana (SOL) price has been inside a neutral pattern since its 2023 high. Let's try to figure out what kind of breakthrough should be expected – in the northern or southern direction.
Solana consolidates above $100
The weekly timeframe shows that the price of SOL has risen after falling to a minimum of $79 in January. Over the past two weeks, it has formed two bullish weekly candles in a row and reached a high of $119.
The token closed above the long-term $100 Fibonacci level but missed its 2023 high by $126. Instead, it formed a falling high.
Source: TradingView
Weekly Relative Strength Index (RSI) gives mixed signals. Although the indicator is above the neutral level of 50, it has also formed a bearish divergence (green), which often precedes downside movements.
SOL Forecast: When to Expect a Bullish Breakout
The daily timeframe cannot confirm the direction of the trend due to ambiguous price dynamics and wave analysis results.
Solana is likely trading inside a symmetrical triangle constructed from the December 25, 2023 high. The symmetrical triangle is considered a neutral pattern, meaning the price can make either a bullish or bearish breakout from it.
However, crypto trader Altcoin Sherpa believes that SOL is in a favorable position to enter the market:
“Buying around $100 seems about right; the chart is still quite volatile. I think simply buy and hold #Solana will be the best strategy for most.”
Meanwhile, wave analysis suggests that the price is consolidating in anticipation of a new bullish move. Most likely, SOL is in the fourth wave of a five-wave upward movement. It is possible that the fourth wave took the form of a symmetrical triangle.
If this calculation is correct, the currency will continue to consolidate in the triangle and then make a bullish breakout from it. In this case, the price could rise by almost 40% to the next resistance at $145.
Source: TradingView
Despite this bullish outlook, a bearish breakout from the triangle would mean that a local top has already been reached and SOL could fall 35% to the 0.5 Fib retracement support level at $69.
YouTube channel
Trusted
Disclaimer
All information contained on our website is published on the principles of good faith and objectivity, and for informational purposes only.. The reader bears full responsibility for any actions he takes on the basis of the information received on our website.