Readings above 50 and an upward trend indicate that bulls still have an advantage. Readings below 50 suggest the opposite.
The indicator is above 50 and increasing, both signs of a bullish trend. Even though the RSI is overbought (green icon), it has not generated any bearish divergence yet, a warning of an impending price decrease.
SOL Price Prediction: How Long Will Increase Continue?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology. This helps them determine the direction of a trend.
The daily time frame count supports the continuing increase. It suggests that SOL is in wave three of a five-wave upward movement (white). Wave three is often the sharpest and longest out of the bullish waves.
FTX has been selling between 250k-700k SOL every day for the last two weeks while price has either been going up or sideways. so far its been getting absorbed like a champ and at current rate their unlocked tokens should be depleted within a week. once this seller is gone I can only imagine how hard its gonna pump.
The daily RSI also supports the increase, since it is increasing and has not generated any bearish divergence.
Since wave three already has 1.61 times the length of wave one, the next most likely target is the 2.61 length at $67. The target is 33% above the current price.
Despite this bullish SOL price prediction, failure to close above the $50 horizontal resistance area can trigger a 20% drop to the closest support at $40. However, this would not invalidate the bullish count.
That would only happen with a decrease below the wave one (red line) high of $32.13. In that case, SOL will decrease by 50% to the long-term support at $27.
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In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.