The Solana (SOL) price is seeing fantastic development at the moment, while most other altcoins are suffering to recover. Can this upward trend be held up?
In our last Solana Price Forecast on the 26th of August we wrote:
„Solana (SOL) could have a strong bounce upwards around $3.1 or $2.43.„
Solana Price Forecast – 16x ROI since ICO!
The Solana price’s performance against Bitcoin has surpassed the 10x mark since its ICO. When looking at the performance against the USD, the performance is even more impressive at over 16x. Early investors can count themselves lucky here.
Solana recently still occupied rank 166 on coinmarketcap, due to its tiny market cap of $31 million. Now, Solana finds itself on rank 89 with a market cap of $121 million. At its all time high Solana’s market capitalization reached $148 million and a price of $4.56.
But what is Solana working on anyway?
According to Solana’s website, they claim to have solved the blockchain trilemma, without the need for sharding technology!
Moreover, Solana enjoys the backing of big investors.
Although this information might tempt investors, as technical analysts we concentrate purely on the chart action. So let’s take a look!
Solana Price Forecast – Solana’s price reached our correction target of ±$2,43 then had a powerful bounce!
SOL fell from $4.56 to ±$2.43 after we forecasted a correction. Our price target of ±$2.43 at the golden ratio was perfectly hit, followed by a powerful bounce off this support level, ending in a 66% price increase!
After the bounce, SOL reached the golden ratio resistance at ±$3,85, which it failed to break.
Nevertheless, the MACD histogram is seeing a bullish development, and the MACD lines might soon have a bullish crossover.
Solana Price Forecast – Bounced off both golden ratios!
The Solana price development looks like it’s straight out of a trading course book. And even though many in the market still don’t fully grasp the evidence of Fibonacci’s law, Solana’s price perfectly bounced from one golden ratio support off to the next golden ratio resistance.
It’s also interesting to note the bullish rejection of the death cross, which almost came to exist. But the 50-4H-EMA was able to bounce off the 200-4H-EMA, keeping the golden crossover intact.
This means that the Solana price is still confirmed bullish for the middle-term. But should the Solana price not find support at the 0.382 Fib level at $3.36, it could very well fall back to the golden ratio support at ±$2.43. But should the Solana price break through the golden ratio resistance at ±$3.85, it could soon find itself on the way to the horizontal resistance between $4.5 – $5!
Solana Price Forecast – The weekly chart indicates a bounce…
The weekly chart isn’t very informative when it comes to finding out whether or not SOL will be able to break its all time high at $5. Although Solana bounced off the golden ratio support, which is very bullish, it was also rejected at the golden ratio resistance, which is bearish.
So it remains to be seen which golden ratio will be broken first. This will decide whether the SOL price will witness a strong rise or a strong fall.
Solana Price Forecast – The same situation against Bitcoin!
The histogram also had a bullish development against Bitcoin. while the MACD lines are right before a bullish crossover! The Solana price currently seems to be struggling with the golden ratio resistance at ±0.00034 BTC. Solana was able to pull off an 88% increase in its price against Bitcoin, after it found support at the golden ratio at ±0.0002 BTC!
Should the Solana price now fail at the golden ratio resistance at ±0.00034 BTC, it could find support at the 0.382 Fib level at ±0.0002888 BTC. Should it not hold, Solana could be moving back to the golden ratio support at ±0.0002 BTC.
The next significant resistance after the golden ratio resistance at ±0.00034 BTC is found at Solana’s all time high at 0.00042347 BTC.
Best Regards and successful trades