2023-3-25 19:00 |
The Solana (SOL) price is attempting to break out from the $26 resistance area and confirm its bullish reversal.
Interest in the Solana network has begun to recover after the emergence of the Bonk meme coin. The token aims to generate liquidity for decentralized exchanges in the Solana ecosystem.
SOL, which is the native cryptocurrency of the Solana blockchain, has fallen since reaching an all-time high of $259.90 in November 2021. The downward movement culminated with a low of $8 in December 2022. However, the price began a massive rally afterward and is currently trading at $21.73.
Despite the increase, the trend cannot be considered bullish yet. The two main reasons for this are the failure to break out above the $26 resistance area and the RSI rejection from the 50 line. Until both these developments transpire, the trend cannot be considered bullish.
A successful breakout above $26 could accelerate the SOL token rate of increase toward $47.
SOL/USDT Weekly Chart. Source: TradingView Solana (SOL) Price Might Have Completed CorrectionA closer look at the technical analysis from the daily time frame gives a bullish outlook. Firstly, the SOL price broke out from a descending resistance line, reaching a new yearly high of $23.91 on March 20. However, it failed to close above the 0.618 Fib retracement resistance level at $22.91 (white).
Despite the failure to close, the daily RSI has moved above 50, a sign of a bullish trend. Moreover, the indicator broke out from its bearish divergence trend line (green line).
Finally, the price seems to have completed an A-B-C structure, in which waves A:C had a 1:1.61 ratio. This is the second most common ratio in such correction.
So, if the correction is complete, the SOL price has begun a new upward movement that will cause a breakout above the $26 resistance area. This could occur in the next 24 hours. As outlined previously, this could cause an increase to $47.
SOL/USDT Daily Chart. Source: TradingViewTo conclude, the most likely Solana price forecast is a breakout above $26 and an increase toward $47. However, if the price falls below the March low of $16, it will invalidate this bullish hypothesis and could cause a fall to $10.
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The post Solana (SOL) Price Recovers, but Is It Gearing up for a Bigger Move? appeared first on BeInCrypto.
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