The price of Solana (SOL) has been gradually increasing since January 23, updating one local maximum after another. Although it bounced off short-term resistance, it is still trading below long-term levels.
Solana forms a double top shape
Technical analysis on the weekly timeframe shows that SOL reached a 2023 high of $126 in December but has been falling since then. The decline culminated in a low of $79 in January 2024.
Since then, Solana has rallied, producing consecutive bullish weekly candles. It peaked at $119 on February 14, 2024, forming a double top off its 2023 high, and today 19th of Feb, it reached $114.72.
The weekly relative strength index (RSI) hints at the possibility of a decline. Although the indicator is above 50, a bearish divergence has appeared on the chart, which often precedes downward movements.
What do analysts say?
Well-known traders and analysts in the crypto community have a positive assessment of the future trend of SOL. AltcoinSherpa believes that there is no need to expect a serious correction yet:
“$ SOL: This is a fancy graph where we see a slow increase. I would expect there to be some sell-off around the highs given the length of time between each peak, but the overall market is only in the green right now. “I’m bullish and I think most will make more dollars just by buying here and sitting on this thing for a few months rather than trying to wait for a 20% correction,” he said.
InmortalCrypto noted that Solana has overtaken BNB in market cap, while SamMti believes that a return to $120 would be a good sign for the altcoin.
SOL price forecast: should we expect new highs
The daily time frame gives a more bullish outlook. This is due to price action, wave calculation and RSI readings.
The chart shows that Solana price closed above the $105 resistance area and the RSI rose above 50. The wave calculation indicates that SOL is in the fifth and final wave of an upward move. If correct, the altcoin will reach a local high near the next long-term resistance at $145, which is 30% higher than current values.
However, a close below $105 would mean the price is still correcting. Then SOL could fall by 40% to the nearest support at $69.
