Solana (SOL) price analysis 1 December: is a new all-time high possible?

Solana could remain inside the ascending channel for a few days.

Bull and bear opposition concept on deep blue background                                 
The weekly relative strength index (RSI) is showing a negative divergence, indicating that the bullish momentum may be weakening – Image: Shutterstock
                                

Digital asset manager Grayscale Investments announced the launch of Grayscale Solana Trust on 30 November. This will be the 16th product in Grayscale’s offerings and it will solely and passively invest in solana (SOL). The Trust is open for institutional accredited investors and eligible individuals.

Apart from its billing of being an Ethereum killer, Solana showcased its energy efficiency in a recent report which stated that each transaction on the network uses “less energy than two Google searches and 24 times less energy than charging your phone”.

A Finder’s panel of 50 fintech specialists is bullish on solana (SOL). They project SOL to soar to $1,178 by 2025 and continue to rally higher to $5,056.82 by the end of 2030.

Could SOL go up and meet the target objectives predicted by analysts? Read the SOL price analysis to find out what the charts suggest.

Solana technical analysis: weekly chart

Solana technical analysis: weekly chart
Solana technical analysis: weekly chart – Image: Currency.com

SOL’s price is in an uptrend. The recent correction in the SOL/USD pair found support in the zone between the 38.2% Fibonacci retracement level of $206.12 and the 50% retracement level of $192.66.

The strong rebound off the support zone indicates that sentiment remains positive and traders are buying on dips.

However, it is not all clear for the bulls. The relative strength index (RSI) is showing a negative divergence, indicating that the bullish momentum may be weakening.

If the price turns down and breaks below the support zone, the selling could intensify and the pair may start its downward journey to $174 and later to $135.64.

This negative view will invalidate if the bulls push and sustain the price above $250. Such a move could open the doors for a possible rally to $314.04.

Solana technical analysis: daily chart

Solana technical analysis: daily chart
Solana technical analysis: daily chart – Image: Currency.com

SOL’s price has been trading inside an ascending channel pattern for the past few weeks. The bulls pushed the price above the channel in early November but could not sustain the higher levels. 

The price dropped to the support line of the channel where the buyers again stepped in and bought the dip. This indicates aggressive defence of the support line by the bulls and equal aggression by the bears in defending the resistance line. 

If buyers drive the price above the centreline of the channel, the bullish momentum could pick up and the pair may rise to the resistance line. This level may again act as a stiff hurdle because the bears are likely to defend it with vigour.

If the price turns down from the resistance line, the pair will extend its stay inside the channel. Alternatively, a break and close above the channel could signal a pick-up in momentum. 

On the downside, the bears will have to sink and sustain the price below the channel to indicate a trend change. The selling could intensify on a break and close below $180.

Solana: Buy or sell at current levels?

Solana’s price analysis shows that it is trading inside an ascending channel pattern. If bulls drive the price above $231, the pair could rise to $241.59 and then challenge the all-time high. Contrary to this assumption, a break and close below the support line of the channel will indicate the start of a deeper correction.

Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.

Further reading

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