The Solana (SOL) price moved above $110 this week and is quickly approaching its 2023 highs.
SOL has increased since deviating below its range low on January 25. It has nearly reached the range high.
Solana Approaches Yearly High
The Solana price has increased at a fast pace since October 2023. The upward movement culminated with a high of $126 in December 2023.
SOL regained its footing after a nearly two-month decrease and began another upward movement, increasing by 30%. SOL is approaching its 2023 high, slightly below a critical long-term horizontal and Fib retracement resistance level.
SOL/USDT Weekly Chart. Source: TradingView
The weekly Relative Strength Index (RSI) gives a mixed reading. When evaluating market conditions, traders use the RSI as a momentum indicator to determine whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. While the RSI is above 70 and increasing, it could generate a bearish divergence (green line) depending on the weekly close.
What Are Analysts Saying?
Cryptocurrency traders and analysts on X positively view the future SOL trend. Inmortalcrypto suggests SOL will increase to at least $140.
SOL/USDT Weekly Chart. Source: X
Sam MTI suggests SOL has started the next leg up due to a breakout above resistance. Bluntz_Capital analyzed the SOL/BTC pair, predicting a breakout to make the SOL price outperform Bitcoin. Since the BTC trend is bullish, he believes the SOL/USD pair will increase parabolically.
“sol/btc shaping up beautifully here. $sol is gonna rip imo, $150 LFG” Bluntz_Capital stated.
SOL Price Prediction: New Yearly Highs Incoming?
The daily time frame readings are decisively bullish, supporting the continuation of the upward movement. The daily chart shows that SOL has increased since deviating below its range low in January 2023 (red circle).
The deviation also occurred in the RSI since the indicator increased above 50 shortly after the price reclaimed the middle of its range.
Five days ago, SOL moved above the middle of the range and is now approaching its high. This has coincided with an ongoing upward trend in the RSI.
If the SOL price continues to increase, it can reach the next resistance at $140, 22% above the current price. This is also close to the previously outlined long-term horizontal and Fib resistance level.
SOL/USD Daily Chart. Source: TradingView
Despite the bullish SOL price prediction, a rejection from the range high can trigger a 10% drop to the middle of the range at $102.
For BeInCrypto‘s latest crypto market analysis, click here.
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 Conditions, Privacy Policy, and Disclaimers have been updated.
Read the full article here