Solana’s Price Drops Below $100
The price of Solana (SOL) has fallen below $100 after reaching a high of $126 on December 25. But what does this mean for the future of SOL? Let’s dive into the details!
Solana Rally Comes to an End
Since July 2023, SOL has been on an upward trend, breaking out from a descending resistance trend line. It reached a high of $126 in December, marking a 610% increase in just over three months. However, the recent decrease caused the price to fall below the Fib retracement resistance level.
RSI Indicates Bullish Momentum
The Relative Strength Index (RSI), a momentum indicator, suggests that bulls still have an advantage despite being overbought. There are no signs of weakness or bearish divergence to indicate an impending top.
SOL Price Prediction: Reclaiming $100
Technical analysis on the daily timeframe suggests that SOL is in a corrective wave. The most likely wave count indicates that it is in the fourth wave of a five-wave upward movement. The RSI also supports this possibility with a bearish divergence at the $126 high.
While the price recently bounced off the Fib retracement support level at $86, there is a potential for consolidation in a symmetrical triangle pattern before breaking out towards a target of $180.
Hot Take: SOL’s Future Hangs in Balance
The recent drop below $100 raises questions about the future trajectory of Solana’s price. While there is potential for further upward movement, a breakdown from the triangle pattern could lead to a significant decrease to the 0.5 Fib retracement support level at $73. The coming days will be crucial in determining SOL’s next move.
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