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Breaking Solana (SOL) Reaches Another Yearly High—Can It Reclaim $100 in 2023?

2 mins
Updated by Kyle Baird
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In Brief

  • The Solana (SOL) price has increased by 740% this year, breaking out from two long-term resistance levels.
  • While the weekly Relative Strength Index (RSI) is bullish, the daily time frame RSI shows signs of weakness.
  • Whether the SOL price reaches a close above $86 or gets rejected will help determine the future trend.
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The Solana (SOL) price has increased at an accelerated rate since October, reaching a new yearly high of $86.80 today. 

Will this increase continue until the end of the year, or will the SOL price reach a local top soon? Let’s find out.

Solana Uptick Accelerates

The Solana (SOL) price has increased exponentially this year after it fell to a long-term low of $9.68 on January 1. During the increase, SOL cleared long-term horizontal and diagonal resistance trend lines. 

In July, the price moved above a descending resistance trend line that had been in place since the all-time high in November 2021.

Then, in October 2023, the price broke out from a horizontal area that intermittently acted as support and resistance for over two years. Since then, the price has created eight bullish candlesticks in ten weeks.

This Solana increase culminated with a new yearly high of $86.80 today. This amounts to a 750% increase since the start of the year.

Solana (SOL) Price Movement
SOL/USD Weekly Chart. Source: TradingView

The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.

Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.

The RSI is increasing and is above 50, both signs of a bullish trend.

SOL Price Prediction: Is $100 Within Reach?

Utilizing the Elliott Wave theory, technical analysts examine long-term price patterns and investor psychology that recur to determine the direction of a trend.

The most likely wave count suggests that the SOL price is nearing the top of wave three in a five-wave upward movement (white) that began in June. Wave three has extended and has 3.61 times the length of wave one.

Read More: Solana vs Ethereum

The daily RSI has generated bearish divergence (green), which occurs when a momentum decrease accompanies a price increase. It is a sign associated with bearish trend reversals. This supports the possibility that the top of wave three is near.

So, whether the SOL price gets rejected at $86 or breaks out will determine the future SOL trend.

Solana (SOL) Price Prediction
SOL/USDT Daily Chart. Source: TradingView

A successful breakout can lead to a 55% increase to the next long-term resistance at $135. On the other hand, a strong rejection will mean wave three has ended and can cause a 25% drop to the closest support at $70.

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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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