Solana (SOL) Price Dips Below $100 – Should Bulls Be Concerned?

Solana has fallen since its high of $126 on December 25. The SOL price decreased below $100 yesterday.

Is this decrease a sign of things to come, or will the SOL price regain its footing? Keep reading below to find out!

Solana Rally Finally Cools Down

Since breaking out from a descending resistance trend line in July 2023, the SOL price has increased. Afterward, it validated the same trend line as support in September (green icon) and accelerated the rate of the increase.

The upward movement led to a high of $126 in December, an increase of 610% in 105 days. This also caused a breakout from the 0.382 Fib retracement resistance level when measuring the entire downward movement since the all-time high.

However, yesterday’s decrease caused the SOL price to fall below this Fib level. It rendered the previous breakout as a deviation (red circle).

SOL/USDT Weekly Chart. Source: TradingView

The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage. Readings below 50 indicate the opposite.

While the RSI is extremely overbought, it has not shown any signs of weakness, such as a bearish divergence to warn of an impending top.

SOL Price Prediction: When Will Price Reclaim $100 Again?

The technical analysis from the daily time frame suggests that Solana began a corrective wave.

Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.

The most likely wave count suggests that the SOL price is in the fourth wave of a five-wave upward movement (white). The daily RSI supports this possibility since the $126 high was combined with a bearish divergence in the RSI (green).

Yesterday, the price reached the 0.382 Fib retracement support level at $86 and bounced (green icon). Cryptocurrency trader Altcoin Sherpa noted this bounce but was disappointed that his entry was not triggered.

The most likely pattern for wave four is usually a symmetrical triangle. So, the bottom may have been reached, and the price will consolidate in the triangle before breaking out.

If so, a potential target for the top of the SOL upward movement is at $180, 85% above the current price.

SOL/USDT Daily Chart. Source: TradingView

Despite this bullish SOL price prediction, a breakdown from the triangle can trigger a 26% decrease to the 0.5 Fib retracement support level at $73, which would complete wave four.

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