Solana’s Price Surge Aims for $360—Key Support Level Must Be Maintained

The native token of Solana is continuing an impressive upward trend throughout May, rising from $146 at the end of April to nearly $180 during Wednesday trading, marking its highest daily close since mid-February.

In light of this, the independent analyst More Crypto Online (MCO) has shared a recent video analysis, explaining that the movement is technically “progressive but not excessively stretched.” MCO emphasizes that the rise since the low on April 30 reflects a “five-wave pattern,” suggesting that, as there hasn’t been a confirmed peak, another high is possible as long as the current micro-support area remains intact. This micro zone, situated between $159.67 and $168.23, was briefly tested by Solana before it surged higher.

Potential for Solana to Reach $360

Analyzing further, the Elliott-wave structure indicates five distinct waves, even at what MCO describes as “the nano level.” This arrangement usually indicates the end of either an impulsive first wave or the concluding part of a diagonal sequence, according to classical wave analysis.

MCO illustrates that if this is indeed a five-wave move, it may represent an A-wave, which would then lead to a B-wave that ideally forms a higher low, followed by a C-wave advancing further. Their preferred scenario regards this as the first wave of a significantly larger rally that could potentially “easily reach $360 or beyond.”

Additional Insights

For traders looking to manage risk in the near future, MCO identifies two significant levels. On the upside, $191.25 is marked as “the next key resistance level,” identified as the 61.8% extension of the first and third waves, a classic Fibonacci benchmark for the fifth wave.

Conversely, MCO warns that breaking below $172, which represents the latest swing low, would indicate the formation of a price peak in wave 1. In a follow-up post on X, he succinctly stated: “The fifth wave upward has been confirmed. Watch for $191.25 as the next resistance… breaking below $172 would signal that a peak has been reached.”

Additional Insights

A decisive and high-volume move above $191.25 would affirm that immediate correction risks have been averted; however, a close below $172 would indicate that the initial phase of the new upward movement has likely run its course and a pullback towards the upper $160s or possibly the mid $150s might begin.

Traders always should bear in mind that Elliott-wave analysis operates on probabilities rather than certainties. Given Solana’s historically high volatility, managing position sizes in conjunction with a strategic approach to the two critical technical levels mentioned in today’s examination is essential for risk management.

At the time of writing, SOL was priced at $180.

Featured image created with DALL.E.