Solana Price Prediction: Is a Major Price Rally Coming Soon?

Will Solana Price Experience a Major Rally? Key Levels to Watch

Solana price has recently entered the final stages of a major Wyckoff Re-accumulation pattern. According to analyst Trader Tardigrade, the cryptocurrency is nearing the end of phase D and is on the verge of a phase E market-up phase. This suggests that a significant price surge could be imminent for Solana.

Wyckoff Pattern Signals a Potential Surge in Solana Price

The price movement of SOL in the 644-day plot provided by Trader Tardigrade indicates that it has been in multiple stages of the Wyckoff cycle. The chart emphasizes the major steps: Stage A, Stage B, Stage C, Stage D, and the next one being Stage E. 

The trend observed in the market reveals that Solana is set to transition to the last stage and the price will increase greatly.

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According to the analysis conducted by Trader Tardigrade, a significant profit is likely to be made by investors when Solana passes through the transition of Phase D to Phase E. 

This trend, which is usually a sign of re-accumulation, shows the solid background of future development, which gives the certainty that the next step may give a more price increase.

Will SOL Price Hold $200 Support Amid Market Consolidation?

Crypto analyst reports that SOL price has been on the path of a great rally lately as it peaked at a high of $249 and then suffered a huge resistance and declined. The cryptocurrency is currently consolidating, and it is below the support at around $210. 

According to analysts, the $200 point will be a very important point that SOL needs to cling to in order to prevent the price to go further down.

The price movement indicates that SOL had been rejected once it reached $249, and the price started to pull back. This may be interpreted as a market correction of such a high rally. 

The development of the concentration of the market around the level of $210 shows that the market is at the stage of indecisiveness, as the bulls and the bears seek dominance over the market. 

Nevertheless, the $200 support is discussed as an essential point of buyers since its underpinning might indicate the additional decline.

Is Solana Ready for a Bounce Back?

At the time of writing, the SOL price traded at $201, experiencing a notable drop of 4.74%. This decrease comes after the cryptocurrency faced resistance near the $220 mark, which appears to be a critical level in its recent price action. Other crypto markets have also seen a decrease, with  BTC hovering around $111k and ETH trading near $4k.

Regardless of these fluctuations, the asset has remained above the $200 support, which has stood up quite well throughout this correction.

An examination of the MACD (Moving Average Convergence Divergence) indicator indicates a bearish divergence. The MACD line is less than the 2.86 signal line, which is an affirmation of the recent pressure to the downside. 

Source: Tradingview

This is a downward trend, which indicates that there are more losses that could be encountered in the near future. The rising bearish volume also shows on the histogram, and it is an indication that the market mood is currently on the mode of selling.

Meanwhile, the Relative Strength Index (RSI) is at 38.71 which indicates that the asset is approaching over sold conditions.

Should the bearish trend continue, the Solana price may hit the $180 support within the next few days. Provided SOL breaks up through the resistance of $220, it may recover to an even higher level of $240.