Solana (SOL) price tried to break out of the $26 resistance area and confirmed its bullish reversal.
Interest in the Solana network is starting to recover after the emergence of the Bonk meme coin. The purpose of the token is to generate liquidity for decentralized exchanges in the Solana ecosystem.
SOL, the native cryptocurrency of the Solana blockchain, has declined since hitting an all-time high of $259.90 in November 2021. Downward momentum followed with a December 2022 low of $8. However, later the price started a huge rally and is currently trading at $21.73.
Despite the increase, the trend cannot yet be considered bullish. The two main reasons for this are the failure to break out of the $26 resistance area and the rejection of the RSI from the 50 line. Unless both of these developments happen, the trend cannot be considered bullish.
A successful breakout above $26 could accelerate the SOL token rate of growth towards $47.
Solana (SOL) price may undergo full correction
A closer look at the technical analysis from the daily time frame reveals a bullish outlook. First of all, sol price There was a break above a descending resistance line, reaching a new yearly high of $23.91 on March 20. However, it failed to close above the 0.618 Fibonacci retracement resistance level at $22.91 (white).
Despite the failure to close, the daily RSI has moved above 50, indicating a bullish trend. Furthermore, the indicator broke out from its bearish divergence trend line (green line).
Finally, it seems that the price has completed an ABC formation, with the ratio of waves A:C being 1:1.61. This is the second most common ratio in this type of improvement.
Therefore, if the correction completes, SOL price has started a fresh upward movement that will lead to a breakout above the $26 resistance area. This could happen in the next 24 hours. As mentioned earlier, this could lead to a rise to $47.
To conclude, the most likely Solana price forecast is a breakout above $26 and an increase towards $47. However, if the price breaks below the March low of $16, it will invalidate this bullish hypothesis and a drop towards $10 is possible.
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