Solana Poised For $400-500 Upside As Analyst Spots Wave 5 Formation
Solana (SOL), one of the largest digital assets in the market by market capitalization, has been in a period of price consolidation, oscillating between the $140 and $150 price range. This period follows a significant drop that saw SOL plummet to $109 on August 5th, with a modest recovery since then.
However, despite its resurgence, Solana has struggled to break above upper resistance levels, reflecting a pattern reminiscent of Bitcoins (BTC) price movements for the past week.
Solana Price Forecast
According to crypto analyst XForce, Solana is currently positioned in a way that is strikingly similar to Bitcoins price action, just on a different scale.
The analyst contends that Solana is likely in the midst of a wave 4 consolidation phase and is poised to enter a wave 5 that could potentially double its current all-time high of $259, reached during the November 2021 bull run.
This would imply a price target of approximately $400-$500 for Solana at the top of this market cycle, which could represent a price increase of nearly 250% from current market levels.
However, the analyst also warns that in the near term, Solana could experience a deeper correction, with targets potentially as low as a 22% drop to $110 or even a sharper decline to the $75 mark. This scenario is based on the analysts belief that Solana could enter in a wave Y correction.
Bearish Pattern Emerge, Threatening $100 Support
Adding to the technical analysis, Ali Martinez has recently spotted a potential head and shoulders pattern forming on Solanas hourly chart. This pattern suggests that a breach below the $141 level could trigger a correction, sending Solana down to the $122 range.
This level is of particular importance for Solana bulls, as a breach below $141 could potentially jeopardize the tokens year-to-date macro uptrend, which has been in place since February.
If the $122 level is lost, the theory put forth by XForce, the first analyst, could come into play, with Solana potentially retesting the crucial $100 support floor. This would be a significant test for the tokens long-term prospects, as a breach of this level could have broader implications for Solanas overall market sentiment and investor confidence.
Currently, SOL is trading at $144, down over 2% in the 24-hour time frame, mirroring the broader markets price action. However, in the case of further catalysts for the tokens price action, there are also crucial levels to overcome if the bulls want to get past the $200 mark.
On the SOL/USDT daily chart, the first hurdle that led to the current consolidation range for SOL was at $153, as the first barrier that prevented a test of the next obstacle at $163. Gaining these two levels in the short term will be key to anticipate a move towards $183 before a leg up to the $200 mark.
Featured image from DALL-E, chart from TradingView.com
Source: NewsBTC.com
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