Solana Rising Wedge Hints at Dip Before $260 Surge: Here’s How
Solana’s (Sol) price has formed a rising wedge on the 4-hour chart, indicating that the altcoin’s value may face a setback before its potential rise to $260. At press time, SOL was worth $237.88, up 15% in the past seven days.
While SOL holders expect the rally to continue, several technical indicators suggest they may have to wait longer.
Solana Uptrend Retracement
On the 4-hour chart, BeInCrypto observes Solana A rising wedge pattern has emerged. A rising wedge is a technical pattern that is often considered a bearish signal, indicating potential reversal upward trend.
Two converging trend lines define the pattern. Here, the lower trendline (support) rises steeper than the upper trendline (resistance), forming a narrowing channel. A bearish reversal is confirmed when the price breaks below the lower trendline, indicating a potential decline.
However, in some cases, an upward breakout may occur, although this is less common. In the case of SOL, the price appears to be on the verge of breaking below the lower trendline. Once verified, this could halt the altcoin’s rise, with a significant decline likely to follow.
Furthermore, the Money Flow Index (MFI) adds to this bearish outlook. It’s worth noting that MFI is a technical indicator that uses price and volume to measure capital flowing into and out of cryptocurrencies.
Rising MFI indicates strong buying pressuree, while the decline highlights the dominance of sellers. Currently, MFI is showing a downward trend, exacerbating the bearish sentiment. When combined with an emerging rising wedge pattern, this confluence of signals strengthens the case for a potential decline in Solana’s price.
SOL Price Prediction: $205 to $260?
On the daily chart, Solana Price Faces Resistance The price is at $239.56, trying to climb to $260. Due to this development, it may be difficult for SOL to reach new all-time highs in the short term
The Fibonacci retracement indicator also supports this prophecy. For context, the Fib indicator shows a sequence that generates a pattern of steadily increasing numbers that trend toward the price levels a cryptocurrency is likely to reach
The key one is the 23.6% Fibonacci level, which shows a potential retracement point. Given the Solana rising wedge and lack of buying pressure, the altcoin’s price could drop to $205.12.
However, this may not happen if SOL breaks above the rising wedge’s upper trendline. instead, The coin may rise above $260, a new all-time high.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
