In the dynamic and often unpredictable world of cryptocurrencies, Solana has emerged as a standout performer, making significant strides in a remarkably short period. The digital currency has experienced a meteoric rise, particularly noticeable over the past few days.
Starting from a modest $59 on December 1, Solana embarked on a gradual ascent, reaching $77 by December 10. This climb, however, was challenging, as the currency faced a formidable horizontal resistance at this price point, leading to a minor setback to $68 on December 12.
The resilience of Solana was soon on full display as it not only recovered from this dip but also embarked on a robust new uptrend. The currency revisited the $77 mark, a previous resistance point, but it was on December 20 that Solana truly showcased its potential.
It entered a parabolic rise, a stunning 60% pump in its value, which has not only grabbed the attention of investors and crypto enthusiasts worldwide but also led to overtaking Ripple and then Binance Coin in terms of market capitalization currently sitting at 4th place.
This rapid surge poses a critical question to the crypto community: Is this dramatic rise in Solana’s value a short-lived phenomenon, or does it signal the beginning of a new era in its market dominance? The answer lies in a complex interplay of market trends, investor sentiment, and the evolving landscape of the cryptocurrency market.
The price of Solana reached its lowest point since the all-time high on December 29, 2022, when it fell to $8. It consolidated with the price, encountering horizontal resistance at $30 but forming higher lows, eventually rising above it at the end of October.
The uptrend in which the price is currently started on September 13 but is most likely wave 3 from the five-wave impulse counted from the $8 low. As Solana entered the upper range from its first support after the all-time high at $80, we saw it coming to the first lower structure after the ATH.
This is another resistance point; as the price is overextended, it could be its stopping point. However, no signs of struggle would point to an immediate downturn.
Looking at the hourly chart, we can see some signs of resistance, as the price has been moving sideways since yesterday’s high. But the support is ascending, indicating buying pressure and a possible breakout above.
In the short term, the price of SOL can continue for another high to the $146 area – where lies its next resistance – and the previous daily chart shows this trend. But as this is likely the completion of this uptrend, we will see a correction for its larger wave 4.
Considering the number of broken resistances, it is still unclear where this correction might push back the price, but the most significant one was around $80, which would be our first target. If this scenario plays out, and the price goes back to $80, establishing support, another uptrend should start for its larger wave 5 that could lead the price to a new ATH at the start of 2024.
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.