- Solana(SOL) price surged by 30% in May but faced a recent downturn
- A consensus event may boost SOL price to end the month on a bullish note
Solana (SOL) has shown significant price movement throughout May, with a notable 30% increase. However, the cryptocurrency has encountered volatility in the past five days. As the month draws to a close, all eyes are on Solana to see if it can maintain bullish momentum, potentially aided by the upcoming Consensus event.
What is the Consensus Event?
Consensus, one of the premier events in the cryptocurrency world, is scheduled from May 29 to 31 in Austin, Texas. With over 500 speakers and numerous developer workshops, this event is expected to attract significant attention from the crypto community. Solana’s participation in Consensus could potentially trigger a final surge in its price to end the month on a bullish note, despite the current price action not fully confirming this possibility.
The event will feature leaders from the Solana Foundation alongside prominent projects such as Wormhole, Jito, and Pyth Network (PYTH). Historically, Solana’s involvement in such events has had mixed effects on its price, with both bullish and bearish movements following previous Consensus events.
SOL Price Action and Indicator Readings Mismatch
Solana’s price has been trading within a symmetrical triangle pattern for the past 90 days. Although the price surged by 30% in May, recent days have seen a downturn, presenting a mixed outlook for the end of the month. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are currently bearish, signaling potential downward pressure despite recent gains.
The daily and weekly charts indicate a scenario where SOL might consolidate before a potential breakout, as the cryptocurrency attempts to reclaim the $155 resistance level. However, the bearish MACD cross and declining RSI suggest caution regarding short-term price movements.
SOL Price Prediction: Wave Count Supports Another Increase
According to the wave count analysis on the daily timeframe, Solana’s price is currently in a corrective phase following a significant increase earlier this year. The symmetrical triangle pattern suggests a consolidation phase, potentially leading to a breakout and a new all-time high. However, an alternative wave count indicates a potential lower low, with SOL falling below the April lows before reversing.
The symmetrical triangle pattern remains crucial, as it will determine whether Solana continues its bullish trend or experiences a deeper correction before resuming an upward trajectory.
SOL Short-Term Trend: Unclear
While Solana aims for a bullish monthly close, uncertainties in the short-term trend remain. The upcoming Consensus event could provide the catalyst needed to propel SOL to new heights. However, cautious optimism is advised, given the current bearish technical indicators and recent price volatility.
In conclusion, Solana’s price performance in May has been noteworthy, with a significant increase despite recent setbacks. The cryptocurrency community awaits the Consensus event eagerly, hoping for positive price momentum to conclude the month. Investors should remain vigilant and monitor the symmetrical triangle pattern closely for clues regarding SOL’s future price movements.