Solana Price Surges to $47 Resistance Area
After a successful October, Solana (SOL) achieved a new yearly high of $46.90 on November 1. Although it didn’t close above the $47 resistance area, the cryptocurrency is currently making another attempt at surpassing it.
In July, SOL broke a descending resistance trendline and confirmed it as a reliable support level in September, leading to an acceleration in its upward momentum. After surpassing the $28 horizontal resistance area, SOL reached a new yearly high of $46.70 before failing to sustain its increase and validating the $47 area as resistance.
Assessment of Bullish Momentum
The weekly Relative Strength Index (RSI) is bullish, indicating that SOL is still in an advantageous position for bulls. The RSI reading being above 50 and increasing are both considered signs of a bullish trend for SOL.
There were concerns about a potential sell-off after FTX exchange unstaked 3.96 million tokens and moved 750,000 to Binance and Kraken. However, UnderCldJonny clarified that most of FTX’s holdings are locked and will be fully vested in 2028, which may impact SOL’s price in the short term but not as severely as expected.
Solana Price Prediction: Analyzing the Rally
The SOL daily time frame chart shows a clearly bullish trend attributed to the Elliott Wave count. The third wave is often the largest and sharpest of the bullish waves, and based on this theory, analysts predict that SOL may reach a local top soon and consolidate near the $38-$40 level before completing wave five at $68.
Alternatively, if SOL extends wave three further and reaches the $68 region without consolidation, a close above $48 would confirm this prediction. However, if the price decreases below the wave one high at $32.13, it could fall 30% to the $28 horizontal support area.
Hot Take: Analysts Bullish on Solana’s Future
Despite potential short-term challenges with FTX’s holdings and fluctuations in price levels, analysts remain optimistic about Solana’s future performance based on technical analysis. As always with cryptocurrency investments, it’s essential to monitor market conditions closely and stay informed about any developments that could impact your investment decisions.
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