Solana (SOL) Price Only 6% Away From Reaching Its All-Time High
Can Solana Reach a New All-Time High? | Credit: Hameem Sarwar
Key Takeaways
- Solana (SOL) is creating its third successive bullish weekly candlestick.
- The Solana price trades only 6% away from its all-time high of $259.90.
- When will SOL reach it, and what will the next target be afterward?
Solana (SOL) was one of the first cryptocurrencies to increase in the current market cycle, reaching a high of $210.18 in March. While the price corrected for five months afterward, it regained its footing in August and has appreciated by another 120% since.
During the upward movement, SOL broke out above the final horizontal and diagonal resistance area before the all-time high of $259.90.
Does this mean the SOL price will reach a new all-time high, and if so, how long can it continue to increase? Let’s find out.
SOL Nears All-Time High
The weekly time frame SOL chart shows the price is creating its third successive bullish weekly candlestick since breaking out from a descending resistance trend line at the start of November (white icon). After the breakout, SOL also cleared the $200 horizontal resistance area.
Today, on Nov. 18, the SOL price reached a high of $248.44, only 6% under its all-time high of $259.90. SOL will likely reach the high, and no more resistance is left until it does.
Technical indicators support the increase. The Relative Strength Index (RSI) has crossed above 50 and is moving upward, while the Moving Average Convergence/Divergence (MACD) is doing the same since its bullish cross (black circle).
More importantly, neither the RSI nor MACD are oversold, suggesting ample room for growth.
Solana News is positive. During this increase, Solana’s market cap reached a new all-time high of $116 billion, and so did the SOL dominance. Solana on-chain data is also growing since the blockchain is leading daily inflows , doing over seven times Ethereum’s volume. The SOL/ETH ratio reached a new all-time high, though the SOL/BTC one is still below its March high.
With this in mind, let’s look at the wave count and determine the next targets.
SOL Above $300
The long-term Solana wave count suggests the price is in the fifth and final wave of its upward movement (white). The first target for the top of this move is $307, which would give wave five the same length as waves one and three combined. This commonly happens when wave five extends.
SOL could reach a high between $415-$427 in case of an even larger extension. This would give wave five 1.61 times the length of wave one and take the SOL price to the 1.61 external Fibonacci retracement of the previous decline (black).
The first target represents an increase of 25%, while the second is a 73% rise.
The shorter-term wave count shows that the price is in minor sub-wave three (yellow) of sub-wave three (black), which is often the sharpest part of the upward movement. It is unclear if minor sub-wave four has started yet or not.
Giving sub-wave three 2.61 times the length of sub-wave one leads to a high of $265. This area could create a local top, after which the SOL increase could continue, eventually completing wave five.
Therefore, the wave count suggests the SOL price will reach a new all-time high, giving a target of $307. A short-term decline could happen before the price reaches it.
New All-Time High Likely
Solana has a clear path to a new all-time high after breaking out from its final diagonal and horizontal resistance area.
The wave count suggests the SOL price will break it, giving a preliminary target of $307. SOL could reach a $415-$427 high if the upward movement extends.
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