Solana triggered its first SuperTrend buy signal on the 3-day chart since Oct. 10, according to analysis shared by Ali Charts. The technical indicator flipped bullish after SOL completed a deep correction that saw the asset decline 74% from its previous high. The signal emerged as the SuperTrend indicator moved below price, which technical analysts interpret as a shift in momentum toward buyers. Separately, analyst TraderJB identified bullish RSI divergence near the end of what appears to be an Elliott Wave C correction, suggesting selling pressure may be fading. The technical developments position $100 as the next major resistance level if SOL maintains support above the new SuperTrend baseline.
SuperTrend Indicator Triggers First Buy Signal Since Oct. 10
The SuperTrend indicator on Solana's 3-day chart generated a buy signal after months of bearish pressure, according to chart analysis from Ali Charts posted on X and sourced from TradingView. The indicator uses average true range, or ATR, to track trend direction. When the trailing stop moves below price, traders read it as a bullish signal.
The previous SuperTrend sell signal preceded a 74% correction in SOL price. The indicator has now flipped back below price, marking the first buy signal since Oct. 10. Ali Charts stated this represents the first such signal since that date.
The chart shows SOL recovering after a prolonged downtrend. The SuperTrend indicator now displays below the price level, which technical analysts interpret as momentum shifting toward buyers. The next major resistance level identified in the analysis is $100.
The bullish setup requires follow-through to confirm. If SOL falls back below the new SuperTrend support level, the technical signal would weaken. For the signal to remain valid, SOL must hold above the indicator's new support baseline.
Bullish RSI Divergence Appears Near Elliott Wave C Completion
Analyst TraderJB identified bullish RSI divergence on Solana's weekly chart near the completion of an Elliott Wave corrective structure. The chart, sourced from TradingView and shared on X, shows SOL moving through a broad Elliott Wave pattern that began in 2023.
The analysis marks a head-and-shoulders top formation followed by an A-B-C corrective phase. According to TraderJB, earlier wave 3 and wave 5 highs displayed bearish RSI divergence before SOL entered the major correction. That pattern showed price pushing higher while momentum weakened.
The opposite signal now appears near the end of the correction. The chart displays bullish RSI divergence around waves 3 and 5 of wave C, which TraderJB interprets as fading selling pressure. The analyst stated the current zone offers a strong risk-reward setup for spot accumulation if the wave count proves correct.
The bullish case requires confirmation through price action. SOL must hold the recent bottoming area and build stronger upside momentum before the larger reversal becomes more reliable. If the current zone marks completion of a larger 1-2 Elliott Wave setup, the chart suggests Solana could be preparing for upside movement.
FAQ
What technical signal did Solana trigger on the 3-day chart?
Solana triggered its first SuperTrend buy signal on the 3-day chart since Oct. 10, according to analysis from Ali Charts. The indicator flipped below price after a 74% correction, with the trailing stop now positioned as support. The signal uses average true range to track trend direction, and the current setup identifies $100 as the next major resistance level.
What does the bullish RSI divergence on Solana indicate?
Analyst TraderJB identified bullish RSI divergence on Solana's weekly chart near the end of an Elliott Wave C correction. The divergence appears around waves 3 and 5 of wave C, suggesting selling pressure may be fading. This pattern shows price making lower lows while the RSI indicator makes higher lows, which technical analysts interpret as a potential bottoming signal.
