Solana (SOL) Indicator Gives Bullish Signal That Previously Led to 415% Price Increase

The Solana (SOL) price has increased since August and broke out from a resistance trend line last week. The trend line had existed since the yearly high, so the breakout could commence a move that leads to new highs.

Moreover, SOL showed strength last week by increasing 6% despite a correction in most of the crypto market. To compare, the price of Ethereum (ETH) fell by nearly 10%.

Let’s analyze the Solana price action and see if this breakout will start the rally that leads to new highs.

Solana’s Bullish Signal

The weekly time frame SOL chart shows a breakout from a resistance trend line that existed for 217 days, specifically since the yearly high in March.

The upward movement leading to the breakout started in August when the SOL price bounced, saving the $125 horizontal support area. Then, it created a higher low in September (white icons).

Solana’s price also created a bullish candlestick last week, despite a short-term decline ongoing throughout most of the crypto market.

There is also some positive Solana news after it flipped Ethereum in 7-day fees for the first time, reaching over $25 million.

Technical indicators give an extremely bullish outlook. The Moving Average Convergence/Divergence (MACD) has just made a bullish cross (black circle), while the Relative Strength Index (RSI) is above 50. Both are bullish signs.

The previous time the MACD made a bullish cross during a period when the RSI was above 50 was in August 2021 (white). This signal preceded a 416% price increase, leading to the all-time high price of $267.

The SOL price also broke out from a descending resistance trend line at the time.

Solana All-Time High

Aligning with the positive Solana price action, the weekly wave count predicts a new all-time high. The count indicates that the price of SOL has completed wave four and is in wave five of a long-term increase (white). The entire structure started in December 2022.

The breakout from the descending resistance trend line and symmetrical triangle confirmed that wave five has finally started.

The lower target for the top of wave five is $237. The target is created by the 1.61 external Fibonacci retracement (black) of wave four.

On the other hand, the higher target is $305. It is found by giving wave five the same length as wave one (white).

Reaching it will result in a 75% increase in the SOL price. While not as substantial as the increase after the previous bullish signal, the target will still represent a new Solana all-time high.

Trend Remains Bullish

Solana’s long-term price action, indicator readings, and wave count all point to a bullish trend. Since Solana broke out from a long-term resistance trend line, it will likely increase toward a new all-time high.

While the upward movement may not be as significant as the previous cycle, a 75% upward movement could still follow.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

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