Solana (SOL) Price Jumps 50% – Does This Mean Capitulation Is Over?
The Solana (SOL) price has increased over the past two days but could still be in a relief rally. An eventual re-test of $13 is the most likely scenario.
The Solana price has decreased since reaching an all-time high price of $253.30 in Nov. 2021. Initially, the Solana price bounced at the $29 horizontal support area. However, it finally broke down on Nov. 9 and proceeded to reach a low of $12.37 in Nov. 2022.
Prior to the breakdown, this long-term area had been in place for 567 days. The weekly RSI supports the decrease. It has broken down from its bullish divergence line (green line) and is decreasing.
Afterward, the Solana price fell to a low of $12.37 and bounced. The bounce created a long lower wick and validated the $13.50 horizontal area as support.
So, the most likely Solana price prediction is trading between the $13.50 and $29 areas, with the latter acting as resistance.
Solana Price Prediction: Short-Term Relief or Reversal?
The technical analysis from the daily chart supports the scenario in which the SOL price does not reclaim the $28.75 area. The main reason for this is that the area is both a horizontal resistance in the daily time frame and the 0.618 Fib retracement resistance level (white).
Furthermore, the RSI is below 50 and has not generated any bullish divergence. While the Solana price has increased over the past 24 hours, possibly due to lower-than-expected CPI reading, there are no clear bullish reversal signs yet.
To conclude, the price forecast can be considered bearish as long as the SOL price does not reclaim the $28.75 resistance area.
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