Solana Breaks Out from Corrective Pattern
The price of Solana (SOL) has been increasing inside an ascending parallel channel since the beginning of the year. In November, SOL broke out from the channel’s resistance trendline and reached a new yearly high of $79.50 on December 16. The increase has been parabolic and not following any discernible pattern.
Signs of Weakness in Lower Time Frames
Although the Relative Strength Index (RSI) is above 50, it has started to show weakness in the form of bearish divergence. This occurs when a momentum decrease accompanies a price increase. Traders are using the RSI to evaluate market conditions and determine whether to buy or sell an asset.
What do Analysts Say?
Cryptocurrency traders have different opinions about SOL’s future. CryptoPoseidonn believes that a top may be close but suggests waiting for a 4-hour trend break before making any moves. CryptoBusy is undecided due to the price struggling with the $78 level and advises patience.
SOL Price Prediction: Is a Local Top Close?
Technical analysts using the Elliott Wave theory suggest that SOL is in the third wave of a five-wave upward movement. If this count proves true, the price could correct by 25% and reach the 0.382 Fib retracement support level at $55.60 before continuing to new highs.
Hot Take: Is SOL Heading for a Correction?
The Solana (SOL) price has seen significant growth recently, reaching new yearly highs. However, signs of weakness are emerging in lower time frames, such as bearish divergence on the RSI indicator. Analysts have mixed opinions on whether a top is close or if SOL will continue to push higher. According to technical analysis using the Elliott Wave theory, a correction may be imminent before the price potentially reaches new highs. Keep an eye on key levels and market conditions to make informed trading decisions.
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