Solana (SOL) price has been falling since November 16, when it hit a yearly high of $68.20. Despite the decline, SOL is still trading above a key horizontal support zone. Will the uptrend continue?
Solana raises price above $50
SOL prices have increased sharply since the beginning of the year. In July, Solana broke above a descending resistance line that had existed since its all-time high.
After confirming this line as support (green symbol) in September, SOL price accelerated its rise, leading to a new yearly high of $68.20 last week.
During the increase, SOL also broke out above two main resistance zones.
With the RSI as a momentum indicator, traders can determine whether the market is overbought or oversold and decide whether to accumulate or sell an asset.
The bulls have the advantage if the RSI is above 50 and sloping up, but if the RSI is below 50 the opposite is true. The weekly RSI is currently rising and in the overbought zone.
SOL price prediction: Will the price increase again?
A closer look at the wave count on the daily timeframe shows that the outlook remains positive.
Starting in June, SOL appears to have begun a 5-wave upward movement (white). In particular, wave three expands, with a length of 2.61 times that of wave one.
If the wave count is correct then SOL is now in wave four, i.e. corrected. It is unclear whether wave four has ended or if the price will correct further. If so, it could return to the $48 long-term support zone before bouncing back.
The number of waves shows that the trend remains bullish and SOL price will increase again.
The upside would be confirmed by a move above the yearly high at $68.40, which could trigger a 50% rally to the next resistance at $86.20.
Despite this bullish prediction, a close below the $48 horizontal support area could send the price down 50% to the next support at $28.