The Recent Surge in Solana (SOL) Price
If you’ve been following the cryptocurrency market, you may have noticed that the Solana (SOL) price experienced a significant increase after a temporary drop on Thursday. It reached a new yearly high of $51 on Friday, marking a sharp upward movement.
Solana Reaches Long-Term Resistance
Since breaking out from a long-term descending resistance trend line and validating it as support in September, the SOL price has been on a swift rally. The current trading price is inside the long-term $50 horizontal area, and there’s speculation about whether it can break out above this resistance level.
The Relative Strength Index (RSI) is currently above 50 and increasing, indicating a bullish trend. The lack of bearish divergence suggests that the price may not experience an impending decrease despite being overbought.
SOL Price Prediction: How Long Will Increase Continue?
Technical analysts are employing the Elliott Wave theory to predict the continuation of SOL’s upward movement. The daily time frame count supports the idea that SOL is in wave three of a five-wave upward movement, which often marks the sharpest and longest bullish wave.
FTX has been selling between 250k-700k SOL every day for the last two weeks while price has either been going up or sideways. so far its been getting absorbed like a champ and at current rate their unlocked tokens should be depleted within a week. once this seller is gone I can only imagine how hard its gonna pump.
With wave three already at 1.61 times the length of wave one, the next likely target for SOL is 33% above the current price at $67.
Hot Take: Potential Caution Ahead
Despite bullish predictions, failure to close above the $50 horizontal resistance area may trigger a 20% drop to the closest support at $40. However, this would not invalidate the bullish count unless SOL decreases below the wave one high of $32.13.
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