Solana (SOL) Price Reclaims $150, Eyes Next Critical Resistance Level

Key Takeaways

• SOL struggles near $156 resistance after a recent price bounce.
• A higher low signals the possible start of a new uptrend.
• Risk of correction if rejected below $150 resistance.

Solana (SOL) shows signs of a potential trend shift after retesting key support levels and bouncing off them. Despite a higher low indicating bullish momentum, the price still faces significant resistance. Will SOL break through and confirm a new uptrend, or is this a temporary corrective move before another downturn?

SOL Price Analysis 

After breaking above the descending resistance on July 20, SOL was anticipated to retrace for potential bullish trend confirmation, provided it could hold above the previously broken resistance.

However, the failure to maintain this level indicated that the corrective structure, which began in mid-March, remained in play, pushing SOL back down to its horizontal support near $120 on Aug. 5

As a descending flat triangle formed, seller pressure intensified with each test while buyers held firm at the same level. On Sept. 6, this support area was retested, resulting in a price bounce contributing to the current increase. 

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Additionally, the higher low from Sept. 16 suggests the potential start of an uptrend. However, today’s high of $156 remains just below descending resistance, anchored at the yearly high. 

Given the positive momentum that brought SOL to the projected level, two possible outcomes are ahead. Will SOL break through, signaling the start of a bull phase, or will it get rejected?

SOL Price Prediction

Looking at the hourly chart, two scenarios are in play, both dependent on whether or not a long-lasting WXYXZ correction ended on the Sept. 6 low.

The key lies in interpreting the recent upswing from Sept. 6 to 13.

In the first scenario, SOL began a new uptrend on Sept. 6, which could lead to a stronger upward movement and a breakout above the descending resistance.

As SOL reached $156, corresponding to the 1.618 Fibonacci extension, a new higher high would confirm the five-wave impulse and solidify the uptrend.

SOL’s current rise could be corrective in the second scenario, ending below the $150 resistance.

If rejected, SOL may drop, breaking below the $120 horizontal support and potentially reaching a lower low of $105.

Read more: Solana Price Prediction 2024

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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