Solana
Solana (SOL) expected to resume its rally towards $188
The Solana blockchain’s native token, SOL, has seen a significant increase from around $20 in late 2023 to $200 earlier in 2024. Despite a recent price drop, it remains a 794% increase since the start of year (YTD). Currently, the price of Solana is trading at $144.5reflecting a 10% increase with a market capitalization of $67 billion.
Evai CEO Matthew Dixon expects Solana to resume its rally soon, potentially bringing its price to around $188. However, it must first overcome a short-term correction.
Solana to Rise $188
Matthew Dixon, CEO of Evai, suggested that Solana (SOL) should soon resume its upward trajectory. In a recent tweet, Dixon indicated that Solana’s current price movement resembles a five-wave impulse heading upwards, followed by an ABC correction in the second wave.
Dixon thinks that Solana might experience a brief decline around the ABC correction phase, which will help stabilize the market by eliminating short sellers. This correction is expected to form a robust support level around $144. Once this support is established, Dixon predicts that Solana price will rally towards $188.
Importance of PCE numbers
Today’s personal consumption expenditure (PCE) figures will play a crucial role in Solana’s progress. The PCE price index, which is the US Federal Reserve’s preferred measure of inflation, is scheduled to be released by the US Bureau of Economic Analysis at 12:30 GMT.
The core PCE index is expected to rise 0.1% from the previous month and 2.6% from a year earlier. However, Dixon believes the PCE numbers will play a crucial role in Solana’s progress.
Solana Price Analysis
Solana is currently trading above $144 and the 100 hourly simple moving average. On the hourly chart of SOL/USD, there is a bullish trend line forming with support at $142, near the 50% Fib retracement level of the recent move from $138 to $151.
If the price continues to rise, it could encounter resistance around $150, with a stronger barrier near $152.
Conversely, if SOL fails to break above $152, it could start a correction. Initial support is near $145, and a drop below $140 could push it towards $128 in the near term.
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