The Solana (SOL) network’s Monthly Active Addresses have soared to a new all-time high of 75 million, according to Artemis. This large spike in activity occurs at a time when SOL’s price is shifting.
Amid this, Matthew Dixon, CEO of Evai, shared his insights on SOL’s price action, utilizing Elliott Wave Theory to offer a technical perspective on the asset’s potential direction.
#Solana Monthly Active Addresses hits new ATH at 75m. Data: @artemis__xyz pic.twitter.com/eY58Q2bfkN
— MartyParty (@martypartymusic) September 17, 2024
SOL Price Analysis
Matthew Dixon’s analysis focuses on SOL’s price structure, specifically highlighting a classic five-wave decline, followed by a corrective ABC retracement. As outlined in Dixon’s tweet, the five-wave downtrend indicated a strong bearish impulse, which was followed by an upward corrective structure—a three-wave zigzag formation.
In Dixon’s interpretation, the length of wave C closely matched that of wave A, a typical occurrence in Elliott Wave Theory. This pattern suggests the conclusion of the retracement phase.
After completing the corrective ABC structure, SOL resumed its downward movement, aligning with Dixon’s expectation that further declines are on the horizon.
A clear picture from an Elliott Wave perspective.Following the 5 waves down, #SOL gave us a perfect 3 wave retracement as a zigzag ABC with C=AThen price headed back down again on cue allowing us to trade each of the waves successfully.$SOL – not just yet! – but soon imo pic.twitter.com/vmBPm0MiFd
— Matthew Dixon – CEO Evai (@mdtrade) September 18, 2024
Fibonacci Levels and Current Price Outlook
The chart shared by Dixon also points to key Fibonacci retracement levels. During the ABC correction, SOL’s price briefly touched the 0.786 retracement level, with wave C nearing this point.
Prior to that, the 0.618 level acted as resistance, marking the end of the corrective phase. The retracement towards the 0.618 level once again suggests that SOL may be preparing to test lower levels before finding significant support.
Dixon’s analysis highlights the importance of these technical levels, as the price action has followed predictable patterns. However, Dixon cautions traders, advising patience before considering long positions, as the asset may not yet have reached its bottom.
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RSI Indicator Suggests Potential for Further Downside
The RSI featured in the chart shows a slightly oversold condition, adding to the narrative that SOL could see further declines before a potential reversal.
While the RSI signals that SOL is nearing a possible support zone, Dixon’s analysis suggests it is still too early to anticipate an upward move. In his tweet, Dixon emphasized that while SOL may be nearing a bottom, the current conditions do not yet favor a strong recovery.
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The post This Solana Metric Hits New ATH, But Where’s SOL Price Headed Next? appeared first on CaptainAltcoin.
