The cryptocurrency market is experiencing a resurgence after recent volatility, with Ethereum (ETH) bouncing back from a dip. Solana (SOL) has also shown positive signs, its chart structure hinting at potential upside in the short term. Analysis suggests that SOL may continue rising based on a bullish harmonic pattern. 📊
The Daily Chart: On the daily chart of SOL, analysts point to a Bearish ABCD harmonic pattern. Despite this classification, it’s worth noting that these setups often indicate a bullish continuation after an initial bearish phase before market potential reversal zones (PRZs).
What’s Next: A strong rally from Point A ($126.76) to Point B ($213), followed by a retracement to Point C ($155.82), with buyers aggressively re-entering. This has led to a bounce back of SOL, now trading near $211. According to the ABCD framework, this suggests the CD-leg extension is in full swing.
A potential target: If the pattern unfolds as expected, the CD-leg could reach a 1.58 Fibonacci projection of the BC leg, putting the PRZ at around $236.01 — representing a significant +10% increase from current levels.
Trading Takeaway: The harmonic setup suggests further upside potential in the short term. The key resistance zone near $236.01 should be watched closely by traders as it could act as both a profit-taking and potential reversal level.
Disclaimer: This article provides informational purposes only and is not financial advice. Always conduct your own research before making investment decisions.