Solana (SOL) finds itself at an interesting crossroads. The blockchain platform has seen a surge in activity, reaching record highs in active addresses, and boasts upcoming upgrades to boost performance. However, recent market fluctuations have led to a decline in SOL’s price, leaving investors cautious about the short-term outlook.
In May, Solana network processed a record 41.5 million active addresses, showcasing its growing user base. The upcoming Firedancer upgrade in 2025 also promises to enhance scalability and eliminate downtime, addressing some of the network’s current limitations. Integration with Circle, a prominent digital currency company, has further bolstered Solana’s appeal by introducing programmable wallets and a gas station to the platform.
Despite these positive developments, SOL’s market performance has been under pressure. The cryptocurrency has experienced a significant downturn over the past week, plunging over 13%. This decline has prompted cautious analysis from crypto experts.
Crypto analyst Morecryptoonl offers a cautious forecast for Solana, suggesting it is moving within a wave (4) triangle pattern based on Elliott Wave Theory. This pattern indicates potential downward movement in the near term. The analysis highlights critical price levels, with the likely range between $119 and $190, marking the oscillation zone during the wave (4) triangle formation.
According to Morecryptoonl, the immediate resistance range is between $159.55 and $168.37. Overcoming this zone is crucial for SOL to signal potential upward momentum. Using Fibonacci ratios, the analyst identifies key retracement points at 0.5 ($159.55), 0.618 ($163.13), and 0.786 ($168.37), which are probable resistance levels during corrective waves.
Analyst Predicts Potential 53% Uptick for Solana
However, not all analysts share a bearish outlook. Analyst Ali Martinez offers a contrasting perspective, predicting a potential 53% uptick for SOL. Martinez identifies critical support and resistance levels at $143 and $178, respectively. These thresholds are vital for determining whether Solana will see a significant price rise or face further declines. The symmetrical triangle formation over the last two months supports a potential bullish breakout.
In mid-March 2024, Solana’s price surged from around $101 to nearly $210, forming a symmetrical triangle. After multiple rejections at $210, the price retraced and found support around $141, aligning with the 0.382 Fibonacci level. Solana’s price later surged, encountering resistance at the 0.786 Fibonacci level at $185 before dipping back to $157.
Currently, Solana trades near $150.95, just above the 0.5 Fibonacci level at $143. This crucial area aligns with the lower edge of the symmetrical triangle. Martinez suggests that if Solana’s price remains above $143, it could rebound toward the $178 resistance, potentially reaching $280. However, a drop below $143 could signal further declines, possibly down to $67, underscoring the market’s volatility and uncertainty.
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