In this article, we will explore the factors influencing Solana's price, analyze its recent trends, and offer insights into its potential trajectory for the month ahead.
Solana (SOL) Price Analysis: Daily Timeframe
Source: Tradingview
SOL has just made an interesting breakout from an 80 Day trendline and it seems the token is heading towards revisiting its 2023 low. We can see the EMA crossover happening, indicating that the sellers are currently more than the buyers and the Three Black Crows candle formation also confirms that the bearish momentum is dominant for Solana (SOL). While it’s too early to confirm if SOL is presently in a downtrend, we can anticipate how traders will react to this new breakout in the coming days.
In the meantime, let’s see a clearer view of the chart on H4 timeframe.
Solana (SOL) Price Analysis: H4 Timeframe
Source: Tradingview
We can see that SOL has just broken a secondary support zone and also the RSI (Relative Strength Index) is below the 50% mark and resting on the 30% band, this confirms that the sellers are dominant. If the buyers don't stage a significant comeback, there is a possibility that SOL could experience a decline to its lowest point in 2023 within the upcoming days.
What’s Next For Solana Price? SOL Price Prediction
Source: Tradingview
In the current state of SOL's market, two potential scenarios are worth considering, although confirmation of either is still pending.
Firstly, as indicated by the white arrows, if the buyers manage to regain strength and the zone around the $21 support remains intact, there's a possibility of witnessing SOL's price surge beyond its 2023 high. However, this isn't an immediate buy signal. Multiple confirmatory signs, such as bullish reversal patterns like EMA crossovers, double bottoms, and bullish RSI divergences, need to be observed before considering any buying decisions.
On the other hand, if the support fails to hold, the price of Solana could potentially drop back to its previous low around $10. If you’re a future trader seeking profit opportunities, a cautious approach is advised. Waiting for confirmatory signals such as the retest of the broken trendline, bearish candlestick formations, and other indicators of bearish continuation patterns could provide a basis for informed trading decisions.
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This article is intended for educational purposes and is not financial advice.
