Solana Price Prediction As Market Uncertainty Hints a Fall Below $50

Solana Price Prediction: The recent recovery in Solana (SOL) has shown signs of decelerating momentum as the coin reached a 15-month high of $68. This overhead supply pressure is likely triggered by the broader market uncertainty as Bitcoin grapples with a $38,000 mark. Has SOL price hit the overbought region at $68 or there’s more in the recovery trend?

Also Read: Solana Price Rally Captures Institutional Investor Attention, Can This Interest Thrust SOL To $100?

A Minor Correction Needed for the Next Leap

• The rising channel pattern leads the ongoing uptrend in SOL price
• The SOL price correction may find suitable support of $48.3 and $43.
• The 24-hour trading volume on the Solana coin is $2.37 Billion, indicating a 1.3% loss.

Source-Tradingview

The Solana coin price entered recovery mode in September when the price rebounded from the $17.78 low. This impressive parabolic recovery led to a 293% increase in price over just 10 weeks, peaking at $68.2. 

During this period, SOL buyers successfully reclaimed the daily Exponential Moving Averages (EMA) at the 20, 50, 100, and 200 levels, and surpassed crucial price levels at $30 and, more recently, $48. However, after reaching an 18-month high of $68.2, SOL experienced a pullback to $76.9. 

This correction may be a retest of the $48.3 support level, which aligns with the 38.2% Fibonacci retracement level. As long as SOL maintains above the 50% retracement level, currently at $43, the bullish sentiment surrounding Solana coin remains strong.

Thus, the post-correction rally may assist buyers to continue a bullish trajectory and resume the path of rounding bottom recovery. With respect to this pattern, the SOL price can find its potential target at $78.2 followed by $100, and $143.

Spike in New Address Creation

The daily creation of new Solana addresses is a key indicator of network activity and potential growth. From September 17th to November 17th, the number of new addresses grew from 193.94K to 336.03K, indicating increasing participation and interest in the Solana network. This surge in new addresses typically signals rising demand for SOL and broader adoption of the network.

• Exponential Moving Average (EMA): The upward slope of the 20-day EMA could provide substantial support during a potential pullback in the SOL price.
• Average Directional Index (ADX): Currently at a high of 74%, the ADX indicates a likelihood of exhausted bullish momentum, suggesting that a corrective phase might be necessary for SOL.