Solana (SOL) Approaching the End of a Symmetrical Triangle
The price of SOL has been decreasing since reaching a high of $126 in December 2023. This decrease has been contained within a symmetrical triangle pattern, indicating a potential decisive movement outside of the pattern soon.
Solana Creates Consecutive Bearish Weekly Candlesticks
After breaking through a descending resistance trend line in July 2023, SOL experienced an upward trajectory. It reached a peak of $126 in December, marking the end of its upward movement for the year. However, it faced difficulty surpassing a long-term horizontal resistance area.
Recently, SOL created consecutive bearish weekly candlesticks for the first time since October 2023. Despite this, the price has regained some footing.
RSI Shows Mixed Readings
When evaluating market conditions, traders use the RSI as a momentum indicator. Currently, the RSI for SOL shows mixed readings. While it is falling, it has generated a hidden bullish divergence, which is a sign of strength.
Will 2024 Be Solana’s Year?
The Solana team tweeted its 2024 outlook on January 11, highlighting positive statistics such as increased developer retention and market activity. The outlook also mentions upcoming features that will make token creation on Solana more flexible.
SOL Price Prediction: When Will Price Reclaim $100?
In the daily time frame, technical analysis suggests that SOL will resume its increase after a correction. The Elliott Wave theory indicates that SOL is in wave four of a five-wave upward movement. If this holds true, SOL could consolidate before eventually breaking out and increasing by 75% to the next resistance at $168.
However, if there is a breakdown from the triangle pattern, SOL could drop by 28% to the closest support at $72.
Hot Take: Solana’s Future Outlook
Despite the recent decrease in price, Solana’s outlook for 2024 remains positive. With a strong team and upcoming features, Solana has the potential to rebound and continue its upward trajectory in the crypto market.
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