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.
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.
