Solana recently experienced a bullish breakout from a corrective pattern. On the daily timeframe, the price reached a high of $126 in December 2023 but started declining in a descending parallel channel. On January 23, 2024, the token hit a low of $78. However, it has since rebounded and has been steadily growing. Yesterday, there was a bullish breakout from the channel, although there wasn’t significant growth. The daily RSI provides interesting signals, as it fell below the neutral level of 50 for the first time since September 2023, but it has not confirmed the increase. Analysts on Platform X are bullish on Solana’s prospects. Bluntz Capital believes that Solana has completed the fourth wave and predicts a bullish move to $150. Similarly, CryptoMichNL expects Solana to continue its upward movement, with a target of $140. However, the wave chart and price dynamics do not confirm the direction of the trend. Elliott wave analysis suggests that the price is in the fourth wave of a five-wave upward movement, but it is unclear whether the fourth wave is complete or not. The completion argument is supported by the rebound from the 0.382 Fibonacci retracement level, which is a likely end point for the fourth wave. However, the short duration of the correction and its failure to reach the 0.382 Fibo level of the second wave contradict this scenario. The daily RSI also does not confirm a bullish trend reversal. The price action around the $100 resistance area will be crucial in determining Solana’s future trend. If the price breaks above $100, it could trigger a surge of 60% towards the next resistance at $155. On the other hand, a bounce from that level would result in a 25% drop to complete the fourth wave around the 0.5 Fib retracement at $72. Overall, the outlook for Solana remains uncertain, and further price action will provide more clarity.
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Why the $100 area could be critical to the Solana (SOL) trend
