Solayer (LAYER) Hits New High While Leading the Market, but Warning Signs Are Emerging

While the crypto market slowed down this week, Solayer pushed through without obstacles, reaching a new all-time high price.

LAYER had an extremely positive April, increasing by 120%, a rally that accelerated in the second half of the month.

However, the parabolic shape of the increase has raised concerns about its long-term sustainability.

Let’s examine a few charts and see how much further the upward movement will continue.

Solayer All-Time High

The daily time frame Solayer analysis shows that the price has increased since its inception on February 11.

Initially, an ascending parallel channel contained the upward movement. This changed after a breakout on April 9, which made the rally parabolic.

On April 30, Solayer reached a new all-time high of $3.26, an increase of over 220% since inception.

While such a parabolic increase is unsustainable in the long run, no imminent signs of weakness are present.

The Relative Strength Index (RSI) is overbought but has not generated bearish divergence.

Similarly, the Moving Average Convergence/Divergence (MACD) is above zero and moving upward.

With that said, let’s look at the wave count and attempt to estimate potentially higher targets.

What’s Next?

While the price action and indicator readings are positive, the wave count suggests LAYER could be nearing a local top.

According to the count, Solayer is in wave three of a five-wave upward movement. Wave three has extended considerably and has 2.61 times the length of wave one.

Moreover, the RSI is brewing a potential bearish divergence (orange), which, combined with the sub-wave count (black), supports the bearish short-term LAYER price prediction.

If the LAYER price begins to correct, the closest support will be $2.73, created by the 0.382 Fibonacci retracement support level.

Alternatively, wave three could extend to the 3.61 length of wave one and reach a new all-time high of $4.13.

While this is unlikely because of the divergences and the completed sub-wave count, it does not invalidate Elliott Wave rules and is still a valid scenario.

Local Top is Close

The Solayer price reached a new all-time high on April 30 despite a lackluster crypto market rally this week.

However, the wave count suggests LAYER is nearing the end of the most parabolic portion of the increase, and a correction will follow.

If that is the case, the closest support will be at $2.37, created by the 0.382 Fibonacci retracement support level.

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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