Solana’s growth continues to gain momentum
Solana (SOL) experienced a significant drop in price, reaching its lowest point of $9.68 on January 1. However, since then, its value has skyrocketed. Over time, it has surpassed long-term horizontal and diagonal resistance lines.
In July, the price broke through a descending resistance line that had been established on the chart since its all-time high back in November 2021.
By October 2023, SOL had also surpassed a horizontal area that had acted as both support and resistance for over two years. Subsequently, the price has formed eight bullish candles within a span of ten weeks.
The rally reached its peak today, hitting a new yearly high of $86.80. This represents an incredible increase of 750% since the beginning of the year.
Source: TradingView
The Relative Strength Index (RSI) is climbing and currently sits above the neutral level of 50. These are positive indicators of a bullish trend.
SOL Forecast: $100 is within reach
According to Elliott Wave analysis, the most likely scenario suggests that SOL’s price is nearing the top of the third wave in a five-wave upward movement (white) that commenced in June. The third wave is extended, with a length 3.61 times greater than that of the first wave.
The daily RSI has formed a bearish divergence (green), which occurs when rising prices are accompanied by declining momentum. This divergence often signals a potential reversal in the trend. Therefore, it is likely that the top of the third wave is approaching.
Consequently, the future trajectory of SOL may hinge on whether the price rebounds from the $86 level or experiences a bullish breakout beyond it.
Source: TradingView
A successful breakout could lead to a 55% price surge towards the next long-term resistance at $135. Conversely, an aggressive pullback would signify the end of the third wave and might trigger a 25% decline towards the immediate support level at $70.
YouTube channel