Solana (SOL) has formed a rising wedge pattern on the 4-hour chart, which is considered a bearish signal. This could lead to a short-term price dip before potentially rising to $260. At the moment, SOL stands at $237.88, a 15% increase over the past week.
While current holders hope for continued gains, various technical signals indicate they may have to wait before SOL reaches new highs. The rising wedge pattern suggests possible downside movement.
The lower trendline of the wedge slopes upward more sharply than the upper trendline, indicating a potential downturn once the price breaks lower.
The Money Flow Index (MFI), measuring capital flow in and out of a cryptocurrency, shows a downward trend for SOL, supporting bearish expectations. Combined with the wedge pattern, this reinforces the likelihood of a temporary setback.
On the daily chart, resistance at $239.56 could impede further growth towards $260. Price retracement, according to Fibonacci levels, could bring SOL down to $205.12 before a reversal.
However, if the price breaks above the rising wedge's upper trendline, SOL might surpass $260 and reach new highs.
