Solana (SOL) price has broken out of a long-term structure, fueling the possibility that it will start a correction.
There was a lack of major Solana news last week. However, it is necessary to mention some minor incidents. Solana’s Winter SchoolThe nine-week course for developers supported by the Solana Foundation will close its application process on February 3. So far, there have been over 200 applications.
Following this, Friction, a DeFi project on the Solana blockchain, announced it was shutting down permanently as it was no longer cost-effective.
failed to overcome solana resistance
Since August 13, Solana price has traded below the declining resistance line. This line was rejected in early November, resulting in a low of $8 on 29 December.
However, despite the increase, Solana’s price remained below the line. Additionally, price is showing a lack of strength over the past 24-hours by forming a bearish divergence (green line) in the daily RSI and a bearish engulfing candlestick (white icon). Both of these are bearish signals indicating that there is a possibility of a downward movement.
A daily close above the descending resistance line would negate this bearish Solana forecast. In that case, a move towards the next resistance at $38 would be expected.
Solana Price Prediction for February: Breakout Will Improve
A look at the technical analysis on the six-hour time frame shows that SOL price broke an ascending support line since the start of the year. The breaking of such long-term formations often leads to a downward movement.
Therefore, it is possible that Solana price may decline further to the 0.382 or 0.5 Fibonacci retracement support levels at $19.50 and $17.31, respectively.
On the other hand, a retest of the line would invalidate this bearish outlook. Since retesting the support line would also mean that SOL price would break out of the resistance line mentioned earlier, the readings from the six-hour time frame align with those on the daily time frame. Both give a bearish Solana price prediction for February.
To conclude, the Solana price forecast for February is bearish. There are several reasons for this, such as the formation of a bearish candlestick, bearish divergence in the RSI, and breakdown of an ascending support line. A daily close above $27 would invalidate this bearish outlook and send SOL price towards $38.
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