Just over a week ago, AMBCrypto reported that a head and shoulders pattern on the Solana weekly chart could take the price to $47. The weekly chart and its Fibonacci extension level agreed with this take.
The bearish structure shift followed by a retest of the 78.6% level at $252.9. The subsequent rejection projected $47.9 as the next target.
In fact, the weekly timeframe’s DMI signaled a strong bearish trend in progress, and the moving averages reflected downward momentum.
While the $49 price prediction looked bleak, the RWA market cap on Solana [SOL] progressed higher, breaching the $1 billion milestone.
It was also reported that the banking giant Citi had completed an internal proof of concept using Solana, showing that TradFi was increasingly moving onto the blockchain.
Is Solana already undervalued or will downtrend continue?
New all-time highs in Total Value Locked (TVL) showed network confidence. At the same time, the Solana-based memecoin frenzy and increased speculative activity meant the high onchain activity and SOL prices were not necessarily a bullish divergence.
The $95 and $110 areas were imbalances on the daily timeframe. The $120-$127 was a bearish order block and hence another resistance zone.
A bounce to these price targets was possible. The chance of rejection from the highlighted supply zones is greater the higher SOL goes.
In the short-term, a range formation between $76.6 and $89.8 was detected. These extremes, along with the mid-range level at $83.2, would be the SOL price pivots in the coming days.
A breakout past the highs to the supply zones would be for traders to sell, given the longer-term downtrend. A move beyond $128.34, the daily timeframe’s swing high, is needed to turn the trend around.
Meanwhile, a breakout below the $76 range lows would be one step closer to the sub-$50 SOL price predictions.
Final Summary
- The long-term head and shoulders pattern and the weekly Fibonacci extension level both projected a $47-$49 price target for Solana.
- Over the past ten days, Solana has been trading within a range, but it was too early to expect a long-term recovery.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
