The Solana network has set a new record for active users, reaching 75 million. This surge comes as SOL’s price undergoes a notable shift. Matthew Dixon, CEO of Evai, shares his analysis of SOL price action using Elliott Wave Theory.
SOL Price Analysis
Matthew Dixon's analysis focuses on the price structure of SOL, highlighting a classic five-wave decline followed by a corrective ABC retracement. According to Dixon's tweet, the five-wave downtrend indicated a strong bearish impulse, followed by an upward three-wave zigzag.
Fibonacci Levels and Current Outlook
Dixon's chart also highlights key Fibonacci retracement levels. During the ABC correction, SOL’s price briefly touched the 0.786 retracement level, with wave C nearing this point. Prior to that, the 0.618 level acted as resistance, marking the end of the corrective phase.
RSI Indicator Suggests Potential Downside
The RSI indicator on the chart shows a slightly oversold condition, suggesting that SOL could see further declines before a potential reversal. Dixon emphasizes that while SOL may be nearing a bottom, the current conditions do not yet favor a strong recovery.
Given the current technical indicators and Elliott Wave analysis, the outlook for SOL's price remains uncertain. While signs point to possible further declines, traders are advised to exercise caution.
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