Solana at $180
Key Takeaways
- Solana’s price has started rising after hitting a low in April.
- Recently, SOL broke through above a key resistance level.
- Technical indicators suggest Solana has reached a potential turning point.
On May 1, Solana‘s price started a new uptrend after retesting its April 13 low of $120. It climbed 58%, reaching $180 on Monday, May 20. With the all-time high of $210 being very close, will this upward movement lead to it and possibly exceed it?
Solana (SOL) Price Analysis
On March 18, the price of SOL reached a high of $210 but fell by 43% to $189 by May 1. Subsequently, SOL rebounded, reaching nearly $190 on May 21, above the ascending resistance level.
This resistance was the previous baseline support, and rejection at this level could have signaled another major downturn. Instead, we saw it pricing through, which means there is an increasing likelihood of further rise.
May 1 is the lowest price since its peak. We count this as the starting point of the current rise. We’ve seen three waves out of the potential five-wave count, meaning we will likely see a correction.
Since there is still a chance SOL is in a major correction, to ensure further upside movement, the price should hold above $165 but preferably slightly higher at the horizontal level of $173.
Technical indicators RSI and MACD hint at a potential turning point. The RSI reached its overbought zone of 70%, while MACD bars display lower green bars. However, they still need to be more bearish.
Some signs of struggle are seen at $180, further confirming the assumption of the starting corrective phase. But if the projection plays out, SOL could revisit its all-time high and slightly exceed it on its next high.
What Does The Hourly Chart Say About Solana (SOL)?
Zooming into the hourly chart, we can see that the price is in an ascending channel. Monday’s high reached the 1.272 Fibonacci extension level, slightly lower than its usual 1.618.
The price is currently below the ascending baseline support and at the ascending channel support. This is why a breakout above or below indicates the future outlook. If it bounces and goes above $180 again, it could mean that it is headed to the 1.618 Fibonacci extension at $203 next. But, if, instead, Solana falls below $178, it would mean it got rejected, in which case we could start to anticipate a further drop to around $170.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
