2023-3-21 20:00 |
The Solana (SOL) price has moved above an important Fib resistance level, signaling it has begun a new upward movement. An increase toward $28 is the most likely price forecast.
SOL is the native cryptocurrency of the Solana blockchain, created by Anatoly Yakovenko. The blockchain specializes in smart contracts and decentralized applications (dApps). The Solana price has increased since, creating a bullish hammer candlestick on March 10 (green icon). The increase also caused a reclaim of the 0.5 Fib retracement support level of $17.60. Such reclaims are considered bullish developments and are often followed by significant upward movements.
Moreover, the daily RSI broke out from its bearish divergence trend line (green line), increasing the movement’s legitimacy.
The SOL token price is now approaching the $26 resistance area. If it breaks out, price could increase to the next resistance area at $37. Measuring from the current price, this would be an increase of 60%.
However, a fall to the $17.60 area could follow if the SOL price gets rejected.
SOL/USDT Daily Chart. Source: TradingView Has Solana (SOL) Price Completed Correction?The technical analysis from the six-hour time frame provides a bullish outlook, supporting the continuation of the increase toward at least $28.
There are numerous reasons for this:
Firstly, the SOL price broke out from a descending resistance line. Then, it managed to move above the 0.618 Fib retracement resistance level (white) at $22.91.
Secondly, the price seems to have completed an A-B-C structure, in which waves A:C had a 1:1.61 ratio. If this is indeed a completed correction, the Solana price has now begun a new upward movement that will take it at least to $28.
Finally, the six-hour RSI has moved above 50.
As a result of these bullish readings, an increase toward $28 is expected. Then, the SOL price could break out and increase toward $37. However, if the SOL price closes back below $22.90, the entire upward movement would be at risk. In that case, the Solana price could fall to the 0.618 Fib retracement support level at $17.60.
SOL/USDT Six-Hour Chart. Source: TradingViewTo conclude, the most likely Solana price forecast is an increase toward $28 and a potential breakout toward $37. However, if the rally loses steam and SOL falls below $22.91, a drop to $17.60 would be on the cards.
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The post Solana (SOL) Price is Edging Close to a Bullish Breakout appeared first on BeInCrypto.
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