Solana‘s (SOL) recent market performance has captured the attention of cryptocurrency traders and investors alike. After nearly 10 months of fluctuating market trends, SOL has shot up since October and achieved its best price since May 2022.
This surge in value has sparked a wave of optimism among Solana supporters, raising questions about the sustainability of this rally. Is this the pinnacle of Solana’s price surge, or is there more room for growth in the SOL rally?
On December 29, 2022, the price of SOL reached its lowest point of $8 since its November 2021 all-time high of $260. From there, it started an uptrend, making a recovery to $26 in January 2023. After its first higher low of $13 on June 11, it returned to revisit its previous high but fell down. However, the next low was another higher one of $17, and on September 11, we saw the start of this latest uptrend. It increased to a current high of $77 on December 9.
The first part of this larger uptrend were the first two sub-waves of the five-wave pattern – the first recovery and the first higher low since June 11. The second part was its continuation in wave three and its three sub-waves.
The recent spike shows signs of slowing down as it approaches the next significant resistance point around $80. We are likely to see a fall back down to $50, but that should be a corrective wave four.
If the price of SOL started its new bull cycle at the start of 2023, which at this point seems highly likely, it is set for a sustainable multi-year uptrend that will lead the price to new all-time highs.
But before that happens, we need to see a firmly established support. The expected decline could help. Another higher high will look likely at $144, which would mark the third wave’s completion.
If SOL consolidated after that and stayed above $80, it could indicate that it could match its all-time high, or even beat it.
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.