Solana (SOL) price has been rejected from its high range despite reaching a new yearly high on April 17th. What does this mean for the future price of SOL?
SOL price failed to break out on April 17 and fell significantly, forming a bearish candle in the process. Readings from the short-term six-hour chart are in line with the daily rejection. Solana Network co-founder and CEO Anatoly Yakovenko announced that Saga, the web-3 android phone will start shipping on April 20.
SOL reaches a high range
Technical analysis from the daily time frame shows that the price of the SOL token is trading in a range between $20.50 and $26.00. The price reached a yearly high of $26.00 on April 16 but has been declining since then. It has created a bearish shooting star (red icon) for the next 24 hours.
The shooting star is a bearish candlestick with a long upper wick. This means that there was significant selling pressure on the highs, causing the price to drop. The fact that the candlestick was created at the high of the range adds to its importance. However, the failure to close below the previous day’s lows makes it less significant.
However, the daily relative strength index (RSI) is still increasing and is above 50. The RSI is a momentum indicator used to identify overbought or oversold conditions. An upward trend and a reading above 50 indicate that the bulls still have momentum.
Therefore, the readings in the daily time frame are still undetermined. The nearest support area is at $20.50, while the next long-term resistance is at $36.50.
Solana Price Prediction: Correction before proceeding
The short-term six-hour technical analysis indicates that an initial correction is expected before the upward movement resumes.
The main reason for this is the bearish divergence in the 6-hour RSI (green line). A bearish divergence occurs when the price creates a higher high while the RSI indicator creates a lower high. This means that a similar increase in momentum does not support higher prices. A sharp drop often follows.
If that happens, Solana price could drop towards $22.70 and horizontal Fibonacci support level. Fibonacci retracement levels work on the theory that after a significant price move in one direction, the price will correct or return part of the way to the previous price level, before resuming in the original direction.
In conclusion, Solana price prediction is likely to be a decline towards the support area at $22.70 followed by another upward move towards $26. A six-hour closing below $22.70 means that the correction will deepen and a low near $20 could be reached. On the other hand, an increase above $26.00 will confirm the completion of the drop, and an increase towards $36.50 is expected.
For the latest cryptocurrency market analysis from BeInCrypto, click here.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.