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Solana (SOL) price has been falling since it was rejected by a horizontal resistance area on February 14. SOL has been trading without any fluctuations since the end of December 2023, forming a symmetrical triangle pattern. Here are the details on the cryptocurrency!
SOL Price Analysis
Technical analysis on the daily timeframe shows that the SOL price broke out from the descending resistance trend line on January 28, 2024. The upward movement reached $119 on February 14. However, the SOL price was rejected by the $115 horizontal resistance area on February 14 and has been falling since. As of the current position, SOL is trading just above $100. The daily timeframe Relative Strength Index (RSI) is trending downwards. Investors use the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether a token should be accumulated or sold.
If the RSI value is above 50 and the trend is upwards, the bulls may still have an advantage. However, if the reading is below 50, the opposite may be true. Currently, this indicator is below 50 and trending downwards, both are considered signs of a bearish trend. Wave counting on the daily timeframe since June could indicate that the SOL price is in the fourth wave of a five-wave upward movement.
Expert Opinion on Solana
Technical analysts use the Elliott Wave theory to determine the direction of the trend by studying recurring long-term price patterns and investor psychology. If the count is correct, the fourth wave has taken the shape of a symmetrical triangle; this is the most common pattern for the fourth wave. Altcoin Sherpa also offers a similar view. While still determining its short-term movement, Altcoin Sherpa predicts that the SOL price will increase significantly in 2024.
A breakout from the triangle in SOL could confirm the start of the fifth wave. If this occurs, SOL could rise by 45%, reaching the next resistance at $145. Despite this bullish price prediction for SOL, a breakout from the triangle could trigger a decline of more than 30% towards the nearest long-term support at $69.
