Solana at Crossroads: Expert Analysis Projects SOL’s Price Surge to This Next Level, But There’s a Catch
More Crypto Online, a YouTube channel, shared a detailed technical analysis of Solana (SOL) using the Elliott Wave theory. The analysis presents two primary scenarios, labeled “yellow” and “white,” regarding the crypto’s price movements and potential future directions.
What you'll learn 👉
Yellow Scenario: Potential Price Target of $225 or Higher
According to the yellow scenario, Solana’s sharp decline lately might be part of a fourth wave that bottomed on March 20th. Furthermore, the analysis suggests that Solana could be in a fifth wave, which could potentially push its price to $225, or even higher, to around $237.
The key points supporting this scenario include:
- The current movement is unfolding in an ABC structure within the fifth wave.
- The B-wave should ideally not sustain below the 78.6% retracement level.
- The orange support zone is currently holding, indicating a potential micro five-wave pattern to the upside.
- The April 5th low at $68.40 is crucial; if it holds, the B-wave might be considered complete.
- White Scenario: Deeper Pullback to Significant Support Region
However, if the price breaks below the April 5th low of $68.40, the analysis shifts to the white scenario. This scenario suggests that the fourth wave is still unfolding in a larger WXY pattern, with the Y wave currently developing as an ABC structure.
Consequently, a break below the day’s low could lead to a target of $157, corresponding to the 38.2% retracement level and the 100% extension level of wave W, a key target for a Y wave.
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Show more +Bullish Overall, but Confirmation Needed
Both scenarios presented by More Crypto Online are bullish overall for Solana. However, the yellow scenario allows for a smaller pullback, while the white scenario suggests a deeper pullback to a significant support region.
To confidently confirm that a low has formed, the analysis emphasizes the need for a first five-wave move to the upside, followed by a three-wave pullback. Additionally, for the yellow scenario to confirm a B wave low, a break above the last swing high of around $190, followed by a break above $192, is necessary.
As the analysis illustrates, technical indicators and chart patterns can provide valuable insights into potential price movements, but market conditions can change rapidly, and investors should always conduct their own research and exercise caution when making investment decisions.
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