Solana (SOL) price may have completed both long-term and short-term corrective patterns. If the ongoing breakout manages to retest the $37.60 area, the rate of increase could accelerate further.
Technical analysis on the weekly time frame shows that Solana price is declining since reaching an all-time high of $259.90 in November 2021.
The movement resembles a complete long-term ABC correction (black) since the all-time high. In this, the wave A:C ratio was exactly 1:1.61.
Apart from the wave count, the weekly RSI provides a bullish outlook. The indicator has generated both a bullish divergence (green line) and has broken out of a bearish trend line (black line).
As a result, the weekly time frame provides a bullish SOL price prediction.
Solana Price Prediction: Breakout Will Take New Heights
Solana price was declining below a descending resistance line since reaching a high of $48.38 on August 13. The decline led to a low of $26.84 on October 21.
Solana reversed the trend shortly after and exited the line on 25 October. The overall downward movement resembled a complete ABC correction (black), which had a 1:0.618 ratio of waves A:C. This is the second most common ration in such structures.
If the upward move continues, the nearest resistance will lie at $37.60. This is the 0.5 Fibonacci Retracement resistance level and a horizontal resistance area. A breakout above this would accelerate the rate of growth significantly.
The fact that the October 21 low was slightly higher than the June low still suggests that the trend reversed in June.
However, a drop below the $26.84 low (red line) would invalidate this bullish price prediction from Solana and would instead signal that new lows are on the horizon.
Short-term retracement will lead to long-term reversal
Both the weekly and daily charts provide a bullish outlook, indicating that the upward movement is expected to continue.
However, the shorter two-hour chart is showing a potential for an early retracement.
Solana appears to have completed a five-wave upward movement. Additionally, a bearish divergence (green line) is developing over the past 24 hours.
Therefore, it is possible that the price will decline to the 0.382-0.5 Fibonacci retracement support area between $30.60-$31.50 before resuming uptrend.
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