The Solana (SOL) price has fallen since reaching a monthly high of $24.79 on October 2. The decrease led to a low of $22.08 seven days later.
The price of Solana trades between a long-term horizontal resistance area and an ascending support trendline.
Solana Breaks Out – Fails to Reach Resistance
The daily time frame analysis of Solana shows that the price broke out from a descending wedge pattern on September 15. The increase continued until the price reached a high of $24.80 on October 2.
SOL has fallen since, in a decrease that has also occurred throughout the rest of the crypto market.
Despite the breakout, Solana did not reach the $27 resistance area, which has been in place since the beginning of the year.
Opposite the resistance area, the SOL price is trading above a long-term ascending support trendline at $20. Similarly to the resistance area, this support has been in place since the start of the year.
The daily Relative Strength Index (RSI) is undetermined. With the RSI as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls have an advantage, but if the reading is below 50, the opposite is true.
The RSI is decreasing but is above 50 (red circle). These opposite signs do not confirm the trend’s direction.
SOL Price Prediction: When Will Price Fall Come to an End?
Technical analysts employ the Elliott Wave theory as a means to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The six-hour timeframe shows a bullish wave count (black), which indicates that the upward movement will continue.
If the count is correct, the SOL price began a new five-wave upward movement on September 11. If so, it is currently in wave four of this increase.
Wave four could end soon since the altcoin is trading inside a confluence of support levels created by the 0.5 Fib retracement support level and the resistance trendline of an ascending parallel channel, from which SOL previously broke out.
Then, the cryptocurrency can increase by 20% and complete the fifth wave at $27.
However, despite the bullish SOL price prediction, a decrease below the wave one high (red line) at $20.50 will invalidate the bullish count.
In that case, SOL can decrease by 20% and fall to the $18 horizontal support area.
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