Bittime – On May 1, SOL showed a double bottom pattern. A pattern associated with a bullish reversal. Where is Solana Price headed? Listen to the discussion of this observer's analysis.
SOL Price Bounce
Temporary Basic Signal?
Since the beginning of May, SOL price has shown an uptrend, producing a series of bullish candlesticks. While it did not fall below the April 13 low, it is likely that the recent bounce marks the end of the initial segment of the correction.
This conclusion is supported by a strong reaction and the emergence of a bullish divergence on the RSI and MACD indicators.
If we consider the movement since March 18, it is likely that SOL has completed wave A of its correction.
SOL to USDT analysis by Valdrin Tahiri
Credit TradingView
If this is an ABC correction, it is expected that SOL will meet resistance between the 0.618-0.786 Fibonacci retracement levels, which would mark the end of wave B. Next, further declines could occur, marking the completion of wave C. This scenario presents one of the possible trajectories for the correction.
An alternative hypothesis reads that a local bottom has formed, although further consolidation may be expected before a more definitive breakout occurs.
In this case, SOL may be in the fourth wave of the triangle. Although the rejection at the peak of wave B may be similar, the subsequent movement will be different.
Instead of declining to a new low, SOL will probably experience a period of consolidation within a symmetrical triangle, which will eventually lead to a breakout.
The key difference in the triangle scenario is that the April 13 and May 1 lows would remain the same.
The current bounce strengthens predictions that SOL has completed wave A of its correction. The market reaction as prices approach the $175-190 range will be critical in determining whether the correction will manifest as an ABC structure or an ABCDE triangle.
SOL to USDT analysis by Valdrin Tahiri
Credit TradingView
Solana Price Correction and Potential Recovery
On April 30, Solana experienced a collapse from an ascending support trendline that had been in place for nearly 100 days. Thereafter, price bounced off a significant horizontal support zone on May 1, potentially forming a long lower wick.
Simultaneously, bullish divergences are forming across time frames, in line with the double bottom pattern observed in the price action.
SOL to USDT analysis by Valdrin Tahiri
Credit TradingView
This divergence has the potential to trigger a price bounce, potentially marking the end of the 44-day correction phase for Solana. Alternatively, SOL may experience further declines, towards the next support level.
Is a Short-Term Bounce in Sight for SOL?
The decline from the highs that occurred in March resembled a five-wave decline pattern. Looking at the daily time frame, the RSI and six-hour MACD have also confirmed their bullish divergence.
Combined with price action, which has formed a double bottom pattern, a significant bounce is anticipated.
SOL to USDT analysis by Valdrin Tahiri
Credit TradingView
If this bounce materializes, the main resistance zone is expected to be between $165 and $176.
This range corresponds to the 0.5-0.618 Fibonacci retracement resistance area and coincides with a descending resistance trendline originating from the yearly high.
However, considering the duration of SOL's previous upward movement, it is possible that the current correction is just the initial phase of a longer correction period.
What to Expect for SOL Price in May?
Price activity since March suggests that we are witnessing a fourth corrective wave, which is a response to the 282-day upward price movement that was part of wave three.
Given the length of the uptrend, a long correction is also anticipated.
SOL to USDT analysis by Valdrin Tahiri
Credit TradingView
Scenario One
Wave four can take the form of a symmetrical triangle, a common pattern in these circumstances. The short-term five-wave decline outlined earlier will be part of sub-wave A.
According to this view, SOL is expected to bounce soon, initiating sub-wave B, which is consistent with the bullish divergence observed in RSI and MACD.
Scenario Two
A more bearish view suggests that although price will likely bounce and complete wave B, a wave four correction will unfold as an ABC structure rather than a triangle.
In this scenario, SOL could experience a decline during the summer, completing wave four close to the $90 horizontal support level and the 0.618 Fibonacci.
Possibilities of These Two Scenarios
Both scenarios suggest that a significant bounce will likely occur before a downside move or sideways consolidation that completes wave four. The market's reaction to resistance at $165-$175 will be key in determining the type of correction to come.
Latest Solana (SOL) to IDR price
According to Bittime Exchange the price of SOL to IDR is at IDR 2,519,972 and over the last 24 hours it has increased by +2.10%
SOL to IDR via Bittime Exchange
Correction Looks Like Solana Will Still Continue
After an impressive rally since the start of 2023, it appears that Solana's uptrend has reached its peak. Over the past 44 days, SOL has been trapped in a corrective pattern that is likely to continue in the near future.
A short-term bounce is expected due to the presence of several bullish divergences across various time frames. After that, a correction could lead to further downside movement or sideways consolidation.
How to Buy Solana (SOL) on Bittime
You can buy and sell Solana (SOL) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Solana (SOL) is available on Bittime with the market pair SOL/IDR . To be able to buy SOL IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete guide on how to buy Solana (SOL) on Bittime .
Monitor price chart movements for Solana (SOL), Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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