The Solana (SOL) price created a bearish weekly candlestick after five bullish ones preceding it.
Even though it fell, SOL still trades above a pivotal horizontal support area. Will it resume its ascent?
Solana Increase Finally Cools Down
The SOL price has increased since falling to a low of $8 in December 2022. The price created a higher low on June 5, breaking out from a long-term descending resistance trend line in July.
Initially, Solana failed to sustain its upward movement, returning to validate the trend line as support in September (green icon).
However, the SOL price accelerated its rate of increase afterward. Before last week’s bearish weekly candlestick (red icon), the SOL price had created five successive bullish ones in the weekly timeframe. So far, SOL has reached a new yearly high of $68.20.
SOL/USDT Weekly Chart. Source: TradingView
On November 29, the Solana Foundation will hold an AMA about creator tooling, ecosystem, and possibilities on Solana. The Solana community also announced that it is making its debut at Art Basel Miami Beach, showcasing a new fusion of traditional art and technology.
Cryptocurrency trader Michael Kanhwald has a bullish view on SOL because the price reclaimed an important horizontal support area.
SOL Price Prediction: Is the Correction Over?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The daily timeframe count gives a bullish outlook, though it suggests that a short-term correction could transpire before the SOL price resumes its previous increase.
The most likely count suggests that SOL is in wave four of a five-wave upward movement (white). Wave three extended, being 2.61 times as long as wave one.
If the count is correct, the SOL price will increase again after completing wave four. A potential target for the top of wave five is at $86, an increase of 55% from the current price.
SOL/USDT Daily Chart. Source: TradingView
Despite this bullish SOL price prediction, a daily close below the $48 horizontal area will invalidate the count. In that case, the SOL price can fall by 50% to the $28 support area.
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