The price of Solana (SOL) has formed a rising wedge pattern on the 4-hour chart, suggesting that the altcoin’s value may encounter disruption before a potential rise to $260. At the time of writing, the SOL value is $237.88, representing an increase of 15% in the past seven days.
Although SOL Holders hope that this rally will continue, some technical indicators suggest they may need to wait a little longer.
Solana Price Increase Retracted
On the 4-hour chart, TinTucBitcoin observed that a Solana rising wedge pattern has emerged. A rising wedge is a technical pattern that is often viewed as a bearish sign, hinting at a possible uptrend reversal.
Two converging resistance levels define this pattern. Here, the lower resistance (support) rises stronger than the upper resistance (resistance), forming a narrowing channel. When the price breaks the lower resistance, it confirms a bearish reversal, signaling a possible price drop.
However, in some cases, a breakout can occur, although it is less common. In the case of SOL, it looks like the price is on the cusp of breaking below the lower resistance. Once confirmed, this could halt the altcoin’s rally and could lead to a significant decline.
Furthermore, the Money Flow Index (MFI) also adds weight to this bearish view. Notably, MFI is a technical indicator that uses price and volume to measure the amount of capital circulating in and out of a cryptocurrency.
A rising MFI indicates strong buying pressure, while a decline highlights seller dominance. Currently, the MFI shows a bearish bias, amplifying the bearish sentiment. When combined with the emerging rising wedge pattern, the convergence of these signals strengthens the case for a possible decline in Solana’s price.
SOL Price Prediction: $205 Before Reaching $260?
On the daily chart, Solana’s price encountered resistance at $239.56 as it attempted to climb towards $260. Due to this development, SOL may not easily reach its all-time high in the short term.
The Fibonacci indicator also supports this prediction. To give context, the Fib indicator shows a series of numbers that create a steadily ascending pattern pointing towards possible price levels for the cryptocurrency to reach.
A key level is the 23.6% Fib, suggesting a potential pullback. Considering Solana’s rising wedge and lack of buying pressure, the altcoin price could drop to $205.12.
However, if SOL breaks above the rising wedge’s upper resistance, this may not happen. Instead, the token could surpass the $260 mark and reach a new all-time high.
