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Solana (SOL) Price Clears $60 Despite FTX Selling Pressure

2 mins
Updated by Geraint Price
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In Brief

  • Solana (SOL) price hit a new yearly high of $64 last week, following a parabolic increase since October.
  • A bullish trend is indicated by an RSI above 50, with the current RSI value of 82 still below the all-time high of 99
  • The future SOL price could increase by another 35% to reach $86 if it breaks out of the $67 resistance.
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The Solana (SOL) price reached a new yearly high of $64 last week and is attempting to break out again.

SOL has increased parabolically since the start of October. How long will this increase continue?

Solana (SOL) Closes Above $50 Resistance

The SOL price has surged significantly since breaking a long-term descending resistance trend line and confirming it as support in September (green icon).

This upward movement has been rapid, with no noticeable pullback. SOL surpassed the $27 and $50 resistance areas during the ascent.

Last week’s close of $56 was the first above $50 since May 2022. The SOL price also reached a new yearly high of $64 last week.

Traders commonly use the Relative Strength Index (RSI) to gauge momentum, identifying potential buying or selling opportunities based on overbought or oversold conditions.

Read More: 9 Best AI Crypto Trading Bots to Maximize Your Profits

An RSI above 50 and an upward trend suggest a favorable scenario for bulls, while readings below 50 imply the opposite.

The RSI is above 50 and rising, indicating a bullish trend. Despite the RSI being in overbought territory, there’s no bearish divergence yet, signaling a potential price decline. Also, the current RSI value of 82 is well below the all-time high of 99.

SOL/USDT Weekly Chart.
SOL/USDT Weekly Chart. Source: TradingView

On Tuesday, Lookonchain tweeted that the FTX account deposited $13.6 million worth of SOL to the Kraken exchange. The FTX address has sold most of its holdings, leaving only 3,408 SOL that could provide sell pressure in the future.

SOL Price Prediction: When Will Price Reach a Local Top?

Technical analysts use the Elliott Wave Theory to identify recurring long-term price patterns and understand investor psychology, aiding in trend direction determination.

On the daily time frame, the Solana price appears to be in the third wave of a five-wave upward movement, which is typically the sharpest and longest among bullish waves. Wave three is nearing 2.61 times the length of wave one, a likely level for a top.

Cryptocurrency trader BluntzCapital also used the Elliott Wave Theory to predict the short-term bottom and ongoing bounce.

Read more: What Is Solana (SOL)?

The daily RSI reinforces the upward trend, increasing without any bearish divergence.

So, the future SOL price prediction will likely be determined by the reaction at the $67 resistance. If the SOL price breaks out, it can increase by another 35% and reach $86.

On the other hand, if the SOL price gets rejected, it can correct by 20% and reach the $50 support area, completing wave four.

Notably, the decrease to the $50 area will not invalidate the bullish trend.

SOL/USDT Daily Chart
SOL/USDT Daily Chart. Source: TradingView

Cryptocurrency trader CryptoPoseidonn has used a fractal to predict that the SOL price will fall gradually toward $20 before eventually resuming its increase.

According to Elliott Wave theory, the bullish trend will only be invalidated with a decrease below the wave one high (red line) at $32. That could cause a 60% price decrease to the next support at $27.

For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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