Solana (SOL) appears to have completed its long- and short-term corrective patterns. The rise rate could pick up pace if the current breakout succeeds in reclaiming the £32.8 area.
Since its all-time high price of £227 in November last year, SOL has been declining, according to its technical analysis on the weekly time frame.
There appears to be a long-term A-B-C correction that has already been completed in the movement starting from the aforementioned high. It had an exact 1:1.61 ratio between waves A and C.
In addition to the wave count, a bullish outlook is offered by the weekly RSI. Both a bullish divergence and a breakout from a bearish trend line have been shown by the indicator.
The weekly time frame therefore offers a bullish price prediction for SOL.
Since reaching a high of £42.2 on August 13, the Solana price had been sliding beneath a descending resistance line. The decline brought the price to a low of £23.4 on October 21.
SOL soon changed direction, and on October 25 it broke out from the line. The entire downward movement resembles a completed A-B-C correction, where the ratio of waves A:C was 1:0.618. In these structures, this is the second most frequent ratio.
The closest point of resistance, if the climb keeps going, would be £32.8. This is a horizontal resistance area and the 0.5 Fib retracement resistance level. The rate of increase would be further accelerated by a breakout over it.
Even though the low on October 21 was a little bit higher than the low in June, it’s still possible that the trend changed in June.
This bullish price prediction would be rendered invalid with a decline below the £23.4 low, which would instead indicate that new lows are imminent.
The outlook on the weekly and daily charts is bullish, indicating that more upward movement is expected.
The shorter-term two-hour chart, however, indicates that an initial retracement is possible.
It appears like the coin has finished its upward five-wave movement. Additionally, for the past 24 hours, a bearish divergence has been developing.
Therefore, before the upward movement resumes, the price could decline towards the 0.382–0.5 Fib retracement support area between £26.7–£27.45.