Solana (SOL) price has moved above a key Fibonacci resistance level to signal that it has started a fresh upward movement. An increase towards $28 is the most likely price forecast.
SOL is the native cryptocurrency of the Solana blockchain, created by Anatoly Yakovenko. Blockchain specializes in smart contracts and decentralized applications (DApps). Since then Solana price has risen, forming a Bullish Hammer candlestick on March 10 (green icon). This increase caused a retest of the 0.5 Fibonacci retracement support level at $17.60. Such retracements are considered bullish developments and are often followed by significant upward movement.
Furthermore, the daily RSI broke out of its bearish divergence trend line (green line), adding to the validity of the movement.
SOL token price is now approaching the $26 resistance area. If there is an upside break, the price could continue to rise towards the next resistance area at $37. Measured from the current price, this would be an increase of 60%.
However, if there is rejection in SOL price, it could decline further towards $17.60.
Is Solana (SOL) Price Correction Complete?
Technical analysis on the six-hour time frame offers a bullish outlook, supporting a continuation towards at least $28.
There are several reasons for this:
Firstly, SOL price broke above the descending resistance line. Then, it managed to move above the 0.618 Fibonacci retracement resistance level (white) at $22.91.
Secondly, it looks like price has completed an ABC formation, with the ratio of waves A:C being 1:1.61. If this is indeed a full correction, then Solana price has now started a fresh upside movement that will take it to at least $28.
Finally, the six-hours RSI is moving above 50.
As a result of these bullish readings, an increase to $28 is expected. Then, SOL price could break higher and increase towards $37. However, if SOL price closes below $22.90, the entire upside move will be at risk. In that case, Solana price could decline towards the 0.618 Fibonacci retracement support at $17.60.
To conclude, the most likely Solana price forecast is an increase towards $28 and a possible breakout towards $37. However, if the rally loses steam and SOL breaks below $22.91, a drop to $17.60 would be on the cards.
For the latest crypto market analysis from BeInCrypto, click here.
BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.