As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have seen more than a few rising wedges that ultimately led to a correction before the next big surge. The current Solana (SOL) price action is no exception.
As a crypto investor, I’ve noticed that Solana (SOL) has been forming a rising wedge on its 4-hour chart, which might indicate a temporary dip before it heads towards the anticipated $260 mark. Currently, SOL is trading at $237.88, reflecting a significant 15% surge over the past week.
Even though Solana (SOL) holders may anticipate the price surge to persist, some technical signals hint that they might need to be patient for a while longer.
Solana Uptrend Pulls Back
On a 4-hour timeframe, we at BeInCrypto noticed the formation of a Solana ascending triangle, which often serves as a warning sign for bears. This particular chart pattern is typically interpreted as a bearish indicator, implying a possible shift from an upward trend.
Two lines moving towards each other outline the pattern in this case. The line at the bottom (support) is increasing at a steeper pace than the one at the top (resistance), creating a narrowing pathway. If the price falls below the lower line, it signifies a bearish reversal, suggesting a possible downward trend.
In certain instances, an upward surge might take place, but it’s relatively uncommon. As for SOL, it seems that the price is approaching the point where it could fall below the lower trendline. If this happens and is confirmed, it may halt the altcoin’s rise, potentially leading to a significant drop afterward.
Additionally, the Money Flow Index (MFI) supports this negative perspective. Importantly, the MFI is a technical tool that assigns significance based on the money moving into or out of a cryptocurrency, taking both price and trading volume into account.
As a crypto investor, I’ve noticed that when my Money Flow Index (MFI) is climbing, it suggests strong demand from buyers, while a dip indicates sellers are in control. Right now, unfortunately, my MFI is trending downwards, which only strengthens the bearish outlook. Adding to this, the emerging rising wedge pattern hints at potential price reduction for Solana. Together, these signs point towards a possible drop in Solana’s value.
SOL Price Prediction: $205 Before $260?
On a day-to-day basis, Solana’s value encountered resistance at approximately $239.56 when trying to ascend towards $260. This recent occurrence suggests that reaching Solana’s record peak in the near future might prove challenging.
As an analyst, I find the Fibonacci retracement indicator lending credence to my predictions. To provide some context, this tool displays a progression of ascending numbers that tend to cluster around potential price levels at which a particular cryptocurrency could attain its peak.
A key one is the 23.6% Fib level, which shows a potential pullback point. Considering the Solana rising wedge and lack of buying pressure, the altcoin’s price could decline to $205.12.
Conversely, should SOL surpass the upper boundary of the ascending wedge, it may bypass the predicted event. Instead, there’s potential for the token to soar past the $260 mark and reach a fresh record high.
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2024-11-20 16:33