SOL Price Analysis
Technical analysis on the daily timeframe reveals that the SOL price experienced a decline after being rejected by a horizontal resistance area on February 14. This rejection followed a period of stable trading since the end of December 2023, during which a symmetrical triangle pattern was formed.
On January 28, 2024, the SOL price broke out from the descending resistance trend line, reaching $119 by February 14. Unfortunately, the price faced rejection at the $115 horizontal resistance area, leading to a subsequent decline. As of the current position, SOL is trading slightly above $100.
The daily timeframe Relative Strength Index (RSI) is currently trending downwards. Investors often use the RSI as a momentum indicator to assess market conditions. An RSI above 50 with an upward trend may favor bulls, while a reading below 50 may indicate the opposite. The current RSI value below 50, coupled with a downward trend, suggests a bearish sentiment.
Wave Counting and Expert Opinion on Solana
Examining the wave counting on the daily timeframe since June suggests that SOL is in the fourth wave of a five-wave upward movement. According to technical analysts using the Elliott Wave theory, the fourth wave has taken the form of a symmetrical triangle, a common pattern for this wave.
Altcoin Sherpa, an expert in the field, shares a similar perspective. While the short-term movement is still being determined, Altcoin Sherpa predicts a significant increase in the SOL price throughout 2024.
A potential breakout from the triangle in SOL could signal the beginning of the fifth wave. If this occurs, SOL has the potential to rise by 45%, reaching the next resistance at $145. Despite this bullish outlook, it’s important to note that a breakout from the triangle could also trigger a decline of more than 30%, targeting the nearest long-term support at $69.
