The ongoing rally of SOL Coin has entered a pause phase due to the recent fluctuations in BTC price. The drop in BTC, which caused larger losses in altcoins, occurred amidst speculation that the ETF approval could be delayed. Although there is no concrete evidence for the delay, investors have considered this possibility.
Solana (SOL)
In July 2023, SOL Coin broke free from a declining resistance line and began a steady rise, confirming this area as support in September. Then, preparations for a months-long BTC price increase began. When the Binance FUD was resolved in November, risk appetite in altcoins increased significantly. Throughout this period, SOL Coin continued to reach new highs.
The upward movement reached $126 in December. The SOL Coin price, which increased by 610% in 105 days, easily broke through significant resistance levels.
However, the recent decline caused the SOL Coin price to drop below $100. At the time of writing, BTC had surpassed $44,000 again, and SOL Coin was reclaiming the key region. The RSI is in the overbought zone and does not yet indicate that a peak has been reached. This means that the final test for SOL Coin could signify the continuation of the rise.
SOL Coin Price Prediction
The Elliot wave count on the daily chart presents a more cautious outlook. During periods of high volatility, Elliot wave counts can provide significant signals. For SOL Coin, we see that it is in the fourth wave, which is the corrective phase of a five-wave rise.
Yesterday, the price reached the 0.382 Fibonacci retracement support level and bounced from $86. The most likely pattern for the fourth wave is usually a symmetrical triangle. This means that a local bottom has been reached, and after some consolidation, the price may turn upwards again.
However, the fact that BTC price is challenging the $44,000 mark again at the time of writing could indicate that this consolidation phase might be skipped. If the upward movement has started, we could see SOL Coin investors aiming for $185.
Nevertheless, despite the bullish prediction, a possible return to support could see a drop to as low as $73 in a bearish scenario.
