Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only
- The price of SOL has tripled since January.
- It may face a correction due to a significant metric divergence and a bearish pattern.
Solana [SOL] The bulls should be ready for a potential impact due to increasing RSI divergence and a falling rising wedge pattern on the daily time frame.
is reading Solana [SOL] predict the price 2023-24
SOL has drawn a falling rising wedge pattern and RSI divergence
Source: SOL/USDT on TradingView
SOL has tripled in value since January, rising from $9 to over $21. At the time of publication, it was trading at $24.35, but depreciation is likely in the coming days.
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SOL formed a rising wedge channel pattern – a typical bearish formation. In addition, the daily time frame showed an increasing divergence on the RSI (Relative Strength Index), which may indicate that the current rally is a “bullying”.
Therefore, SOL could drop to $19.06, which is a potential downside of 20%. However, the downside might slow down due to the support levels at $24.15 and $22.68.
However, a daily candle closing above the USD 27.81 resistance would invalidate the bullish outlook. Such a rally could prompt the bulls to target the pre-FTX level at $36.89. The bulls still need to clear the $30.80 mark.
Notably, the On Balance (OBV) trading volume has recently recorded the same low levels, indicating limited volume to drive SOL’s bullish momentum. Therefore, bears can be tempted to depreciate the asset.
SOL development activity was on the rise, but the mood was bearish
Source: feeling
According to Santiment data, the Solana network continues to build, as evidenced by increased development activity. This trend can reassure investors of its stability and improve its long-term value as investor confidence improves.
In contrast, investor confidence was worrisomely lacking at press time, as evidenced by the negative sentiment. In addition, the funding rate was positive but negligible, indicating limited demand for SOL in the derivatives market.
Therefore, the general downtrend could weigh on the efforts of the bulls and undermine further bullish momentum in the coming days. This may lead to a potential price correction.
However, a bullish BTC could prompt the SOL bulls to target the November highs, negating the bearish bias above.