The End of a Parabolic Rise
The Solana (SOL) price has finally put an end to its impressive parabolic rise over the past few weeks. But how much could this cryptocurrency retrace?
Parabolic Move Interrupted
After steadily rising since October 12, the SOL price took on a parabolic trajectory on October 30. This upward trend continued until November 1, when the price reached nearly $47.
However, the large daily wick formed on November 1 indicated that a reversal was imminent. On Thursday, the price attempted to rally back but closed around $40, leaving behind another long wick.
Source: Trading View
A closer look at the hourly timeframe reveals that both Wednesday and Thursday saw candle bodies topping at $44.50, forming an ominous M pattern. This pattern suggests that the price could drop as low as $35.
Fibonacci Retracement
In terms of fibonacci retracement for this short-term move, the price has already surpassed the 0.382 level and is currently just below the golden fibonacci level of 0.618 at $37.00. The 0.786 fibonacci sits below at $34.68.
The golden pocket, which is the area between the 0.618 and 0.786 levels, intersects with a long-term trendline and the bottom of an up-sloping channel that recently contained the price. A bounce could be expected in this area.
$SOL Potential to Make FTX Creditors Whole
According to a report on Coindesk, if $SOL reaches $50 to $60 during this crypto bull market, it could potentially make all FTX creditors whole. This achievement seems highly possible considering the progress made since FTX’s collapse a year ago.
Hot Take: SOL’s Parabolic Rise Comes to an End
The impressive parabolic rise of the Solana (SOL) price has finally come to a halt. After reaching a high of nearly $47, the price has retraced and could potentially drop further based on technical indicators such as fibonacci retracement and M pattern formation. However, there is still hope for a bounce at key support levels. Additionally, if SOL continues to perform well, it could bring significant benefits to FTX creditors. Overall, the future of SOL remains uncertain, but its recent performance has certainly caught the attention of crypto enthusiasts.
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