As the crypto market sees a slight improvement, Solana (SOL) appears poised to exceed its recent levels. Explore the technical signals indicating an upcoming uptrend for this leading cryptocurrency.
The recent pullback in the cryptocurrency market has given way to a slight recovery, with Ethereum (ETH) regaining ground after dropping to $3,357. Following this momentum, several altcoins have also seen improvements, with Solana (SOL) leading the pack.
SOL is currently showing a 3% increase, extending its monthly rally of 13%. Its most recent chart reveals a key harmonic pattern that could indicate a short-term uptrend for this cryptocurrency.
On the daily chart, SOL is forming a bearish ABCD harmonic pattern, a structure that, despite its name, often includes a bullish CD leg before reaching the final potential reversal zone (PRZ). The movement began with a rally from point A near $145.35 to point B, followed by a retracement to point C around $155.91, where buyers stepped in. Since then, SOL has climbed to approximately $167.39, suggesting that the CD leg is currently in progress.
If the pattern unfolds according to the traditional ABCD framework, the CD leg could extend to the 1.20 Fibonacci projection of the BC leg, placing the PRZ around $216.56, approximately 28% higher than current prices.
If the bullish momentum continues, SOL could push toward the $216.56 zone. However, this level could act as major resistance, where profit-taking or temporary corrections are possible. On the downside, the 200-day moving average near $161.88 represents crucial support for maintaining the bullish structure.
In conclusion, the ABCD harmonic pattern observed on Solana’s (SOL) chart appears to indicate short-term upside potential. While consolidation phases are possible, the technical outlook for this cryptocurrency seems favorable in the medium term. Savvy investors will closely monitor the evolution of this trend.
Here’s a guide to capitalize on SOL’s imminent explosion :
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