SOL’s price is up from $54, offering a DCA opportunity for bulls. A breakout from a falling wedge pattern is anticipated, targeting $66.
Solana’s price prediction faces challenges as the smart contracts token, like many altcoins, is affected by selling pressure and Bitcoin’s rising dominance at 51.3%. Recent optimism took a hit due to developments at Binance, the largest exchange.
Binance’s Former CEO Resigns Amidst $4.3 Billion Settlement
In the wake of Binance’s $4.3 billion settlement with the US Department of Justice (DoJ), former CEO Changpeng Zhao (CZ) resigned and admitted guilt in violating US anti-money laundering rules. Richard Teng steps in as the new CEO.
Although CZ retains his stake, he relinquishes all executive roles. This development, coupled with market uncertainty, led to a Solana price correction, testing the $54 support. If the support holds and a rebound occurs, there’s potential for a significant SOL breakout.
Solana Price Analysis: Consolidation and Potential Breakout
Solana is currently finding support at $54, situated between the 100 Exponential Moving Average (EMA) (blue) and the 50 EMA (red). The price is expected to consolidate in this range, and breaching the $56.58 resistance could trigger a 17% breakout to $66.
Solana price prediction weekly chart | Tradingview
The presence of a falling wedge, a bullish pattern, suggests a period of consolidation before an uptrend resumes. Additionally, the Moving Average Convergence Divergence (MACD) indicator is on the verge of a buy signal, indicating a potential long opportunity for traders.
Some traders, such as @CryptoBusy, see profit opportunities in Solana and advise Dollar-Cost Averaging (DCA) as long as the $54 support holds. A recovery above $60 to $70 is plausible, with gains beyond $70 considered a bonus.
$SOL trade quick take profit has been activated! ✅
Shared this 24 hours ago. 💰
Looks like the market just wants us to profit, then it bounces back up from the support!
Follow us @CryptoBusy for more content like this!#Bitcoin #Solana https://t.co/A7tWMSDvGL pic.twitter.com/jpwbpK6wj1
— CryptoBusy (@CryptoBusy) November 22, 2023
However, the Relative Strength Index (RSI) poses a potential bearish signal, particularly on the weekly chart, with an RSI strength of 73 (down from highs around 83).
Solana price prediction weekly chart | Tradingview
If the pullback persists, Solana may face a consolidation phase, finding support at $50.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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