Solana is trading above the $100 level, but has not yet reached its 2023 high and remains inside a neutral pattern. Let’s figure out which direction to expect a breakthrough in. Solana (SOL) price has been inside a neutral pattern since its 2023 high. Let’s try to figure out what kind of breakthrough should be expected – in the northern or southern direction.
Solana consolidates above $100
The weekly timeframe shows that the price of SOL has risen after falling to a low of $79 in January. Over the past two weeks, it has formed two bullish weekly candles in a row and reached a high of $119.
The token closed above the long-term $100 Fibonacci level, but failed to reach its 2023 high at $126. Instead, it formed a falling high.
The weekly relative strength index (RSI) is giving mixed signals. Although the indicator is above the neutral 50 mark, it has also formed a bearish divergence that often precedes downside moves.
SOL Forecast
The daily timeframe cannot confirm the direction of the trend due to ambiguous price dynamics and wave analysis results.
source: tradingview
Solana is likely trading inside a symmetrical triangle constructed from the December 25, 2023 high. A symmetrical triangle is considered a neutral pattern, meaning the price can make either a bullish or bearish breakout from it. At the time of writing, Solana value is at $104.72.
However, crypto trader Altcoin Sherpa believes that SOL is in a favorable position to enter the market: “Buying around $100 seems about right; The chart is still quite volatile. I think simply buy and hold #Solana will be the best strategy for most.”
$SOL: Buying around $100 seems right; this is still a pretty choppy chart. I think that just buying and holding is going to be the best strategy for most people overall. #Solana pic.twitter.com/0bGFCwXZYv
— Altcoin Sherpa (@AltcoinSherpa) February 20, 2024
Solana: When to Expect a Bullish Breakout?
According to the VR Soldier experts, the wave analysis suggests that the price is consolidating in anticipation of a new bullish move. Most likely, SOL is in the fourth wave of a five-wave upward movement. It is possible that the fourth wave took the form of a symmetrical triangle.
If this calculation is correct, the currency will continue to consolidate in the triangle and then make a bullish breakout from it. In this case, the price could rise by almost 40% to the next resistance at $145.
Despite this bullish outlook, a bearish breakout from the triangle would mean that a local top has already been reached and SOL could fall 35% to the 0.5 Fib retracement support level at $69.
The post Solana Above the $100 Mark: Will SOL Break the Records first appeared on The VR Soldier.
