Solana (SOL) Price Analysis: Bulls Eye $260 While Bearish Divergence Signals Caution

SOL is currently trading around the $235 mark and is still looking bullish on lower timeframes. As highlighted in our previous analysis, SOL managed to break above the crucial resistance zone around the $215 mark and gained solid momentum. This move also invalidated the rising wedge pattern forming on the daily timeframe as bulls regained control once again. Right now, it seems like SOL is aiming for higher targets, but there are still challenges ahead. Let’s take a look at the latest SOL charts to see where the price could be headed in the short term.

Key Takeaways

• SOL broke above the $215 resistance, invalidating a bearish structure and keeping bulls in control.
• Price is holding $230 support, with $250 and $260 standing as key resistance levels ahead.
• Despite the bullish structure, a daily bearish divergence signals caution for a possible correction.

Analyzing the Solana Charts

Looking at the 1-day timeframe for Solana, the first thing to notice is that the rising wedge pattern has been invalidated. A rising wedge is statistically a bearish pattern, and the price breaking above it signals that bulls are gaining momentum. At the moment, the price is eyeing higher targets while facing immediate resistance around the $250 mark.

Another thing to note on the 1-day timeframe is that the uptrend is still intact, as the price continues to form higher highs and higher lows. SOL has been on a steady climb since late June, and that trend has yet to be broken. This is also why the current Solana price prediction is leaning bullish.

Now switching to the 4-hour timeframe, we can see that the price rejected the immediate resistance at $250 a couple of days ago and pulled back to retest support at $230. At the moment, the price is reacting positively to this support and appears to be bouncing from here. If the price manages to gain volume here, we can expect this resistance to break soon, with the next target for SOL around the $260 mark, an area that has acted as strong resistance in the past.

While the outlook for SOL is quite positive right now, it is important to note that a bearish divergence has formed on the 1-day timeframe. This divergence suggests that SOL is currently in overbought territory and a correction might be around the corner.

Final Takeaways: What is Next for Solana (SOL)?

Solana is currently trading around the $235 mark and is showing positive signs of continuing its uptrend. We are closely watching the support at $230, and if the price manages to bounce from this level with volume and break above $250, higher targets for SOL could come into play in the coming weeks. However, despite the bullish trend, a bearish divergence on the daily timeframe remains, so caution is warranted as a correction is still possible.