In the latest Solana Price Prediction report, the spotlight is on the prominent smart contracts token grappling with selling pressure, mirroring the broader trend among altcoins in the wake of Bitcoin’s (BTC) strengthening dominance, currently standing at 51.3%. However, the optimistic outlook for Solana has faced a setback in light of recent developments at Binance, the world’s largest cryptocurrency exchange.
As reported, Changpeng Zhao (CZ), the former CEO of Binance, resigned on Tuesday, making way for Richard Teng in the aftermath of the firm’s $4.3 billion settlement with the US Department of Justice (DoJ). CZ, a prominent figure in the crypto world, not only resigned but also pleaded guilty to violating US anti-money laundering rules. Despite relinquishing executive positions, CZ retained ownership stakes.
Amid the resulting market uncertainty, Solana’s price has extended its correction, testing support at $54. If this support holds and triggers a rebound, there is a significant likelihood of SOL experiencing a substantial breakout.
Solana’s Potential Falling Wedge Breakout
Solana Price Prediction analysts suggest that SOL is gearing up for a Falling Wedge Breakout, with immediate support at $54 and consolidation expected between the 100 Exponential Moving Average (EMA) (blue) and the 50 EMA (red). A move above the $56.58 resistance level could propel SOL to a 17% breakout, reaching $66.
Falling wedges, recognized as bullish patterns, allow assets to consolidate before resuming an uptrend. The imminent buy signal from the Moving Average Convergence Divergence (MACD) indicator indicates a potential long position for traders.
Market analysts, including @CryptoBusy, foresee additional profit opportunities with Solana, suggesting that those eyeing short-term gains should consider Dollar-Cost Averaging (DCA) as long as the $54 support holds. While a recovery to the $60 to $70 range is plausible, surpassing $70 would be viewed as a significant bonus.
The Relative Strength Index (RSI) introduces a note of caution, particularly on the weekly chart, displaying an overhanging bearish sentiment. With the RSI currently at 73, down from its highs around 83, a continued pullback might hinder Solana’s immediate return to an uptrend. In such a scenario, a period of consolidation with support at $50 is anticipated.