Solana (SOL) price created a bearish weekly candle after five bullish candles that preceded it.
Although it fell, SOL is still trading above a critical horizontal support area. Will he resume his rise?
Solana surge finally cools
SOL price has risen since falling to a low of $8 in December 2022. The price created a higher low on June 5, breaking a long-term descending resistance trend line in July.
Initially, Solana failed to sustain its bullish move, re-validating the trend line as support in September (green icon).
However, the SOL price subsequently accelerated its rate of increase. Before last week’s bearish weekly candle (red icon), SOL price had created five successive bullish candles in the weekly period. 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 on creator tools, ecosystems, and possibilities in Solana. The Solana community also announced that it will make 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 use Elliott Wave theory to identify long-term recurring price patterns and investor psychology, helping them determine the direction of a trend.
The daily time frame count offers a bullish outlook, although it suggests that a short-term correction could occur before SOL price resumes its previous rise.
The most likely count suggests that SOL is in the fourth wave of a five-wave up move (white). The third wave extended, being 2.61 times longer than the first.
If the count is correct, the SOL price will increase again after completing the fourth wave. A potential target for the top of the fifth wave is at $86, a 55% increase 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, SOL price may fall by 50% to the $28 support area.
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