Solana made a bullish breakout, but was thrown back
The daily timeframe shows that on January 28, 2024, SOL price made a bullish breakout of the descending resistance line. This upward movement culminated in the February 14 high at $119.
However, on February 14, Solana was pushed back by the horizontal resistance area of $115 (red icon) and has been declining since then. SOL is currently trading just above $100.
Source: TradingView
The relative strength index (RSI) on the daily timeframe is bearish. The indicator is below the neutral level of 50 (red circle) and falls further south. All these signals are a sign of a downtrend.
Read also: Solana integrates Filecoin to increase scalability
SOL forecast: will the $100 level survive
Wave analysis of the daily timeframe indicates that the SOL price is in the fourth wave of a five-wave bullish structure that has been forming since June. If this calculation is correct, then the fourth wave took the form of a symmetrical triangle, the most common pattern for the fourth wave.
Altcoin Sherpa gives a similar forecast and, commenting on short-term movement, expects Solana's price to rise significantly in 2024.
A bullish breakout of SOL from the triangle will confirm the beginning of the fifth wave. In this case, the token could rise by 45% to the next resistance at $145.
Source: TradingView
Despite this bullish SOL price outlook, a bearish triangle breakout could trigger Solana down over 30% to immediate long-term support at $69.
Telegram channel
Trusted
Disclaimer
All information published on our website is for general information purposes only.. All responsibility for any actions that the reader takes based on the information posted on our site lies with the reader himself..