Solana kicked off 2024 with a bearish sentiment as it experienced a decline in price. This came after a period of upward movement, where Solana broke through the descending resistance line and saw significant growth. However, the price was unable to overcome the long-term horizontal resistance area, indicating a potential rejection.
On the weekly chart, Solana formed two consecutive bearish candles for the first time since October 2023 and ended the week below $100. The Relative Strength Index (RSI) gave mixed signals, with a declining trend and overbought territory, but also a hidden bullish divergence.
Analyzing the daily timeframe, Solana appeared to be forming a corrective wave within an Elliott wave analysis. It was suggested that the cryptocurrency was in the fourth wave of a five-wave upward movement. This was supported by the bearish RSI divergence observed during the high of $126. The price also bounced off the 0.382 Fib support level at $86, indicating a potential bottom for the corrective phase.
Some crypto traders, such as Altcoin Sherpa, predicted a possible further decline to the 0.5 Fib retracement level at $72. However, it was also noted that fourth waves often take the form of a symmetrical triangle, leading to the possibility of consolidation before a bullish breakout.
If the consolidation scenario played out, the potential target for the upward movement was predicted at $180, representing a 90% increase from the current price. However, if the price made a bearish breakout from the triangle, a 25% decrease to the 0.5 Fib correction level at $72 was possible.
In terms of cryptocurrency platforms, the BeInCrypto YouTube channel was recommended for the latest cryptocurrency news, video reviews, tips, guides, and interviews. Additionally, the article provided a list of top crypto platforms for January 2024, including Kucoin, Bybit, BYDFI, and MEXC.
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