Solana prices have been surging since the start of quarter four of 2023, which may have set the crypto markets on fire
With the recent price action, the token is just another 120% below the current ATH, which is expected to be accomplished in the next few weeks.
The Solana platform recorded the highest-ever network activity as the active addresses hit a peak of 15 million in December 2023. A similar network action was witnessed in January 2023, which helped keep the price from falling apart following the FTX fiasco. Besides, it appears that the investors are extremely bullish on Solana, as the price intends to test the higher resistance in the coming weeks.
With the latest price action, Solana surpassed XRP to become the fourth largest crypto as per the market cap. The bull run just invalidated the rising wedge, which suggests the bears have a minimum exposure to the SOL price. However, the price has already surged beyond $100; will the short continue to get pulverized?
The recent price movement of Solana indicates that the markets are no longer lenient on the technicals right now. As the SOL price rejected off a major supply block and the RSI, MACD continued to hover within a danger zone, suggesting a massive pullback. Currently, the SOL longs appear to have held a tight grip as the OI is witnessing the second-largest squeeze in the short term. As the shorts have been crushed constantly in the past 24 hours, the longs are believed to remain in play for a long time.
The next big thing for the Solana price could be around $140, which appears to be a strong resistance level from which small profits are expected to be extracted. After reaching these levels, if the bulls become exhausted, resulting in a significant pullback, the rally may be confirmed with the next Elliot wave. Unfortunately, the support for this wave is located around $75, which could be a good load-up zone.
After marking the lows of the correction, the Solana (SOL) price is believed to trigger the next wave, which will lead the price to the new ATH, probably above $300.