KEY TAKEAWAYS

• The Solayer (LAYER) price reached a new all-time high on April 30.

• Solayer broke out from an ascending parallel channel pattern.

• How much longer can Solayer sustain its rapid price increase?

While the crypto market slowed down this week, Solayer pushed through without obstacles, reaching a new all-time high price.

LAYER had an extremely positive April, increasing by 120%, a rally that accelerated in the second half of the month.

However, the parabolic shape of the increase has raised concerns about its long-term sustainability.

Let’s examine a few charts and see how much further the upward movement will continue.

Solayer All-Time High

The daily time frame Solayer analysis shows that the price has increased since its inception on February 11.

Initially, an ascending parallel channel contained the upward movement. This changed after a breakout on April 9, which made the rally parabolic.

On April 30, Solayer reached a new all-time high of $3.26, an increase of over 220% since inception.

While such a parabolic increase is unsustainable in the long run, no imminent signs of weakness are present.

The Relative Strength Index (RSI) is overbought but has not generated bearish divergence.

Similarly, the Moving Average Convergence/Divergence (MACD) is above zero and moving upward.

With that said, let’s look at the wave count and attempt to estimate potentially higher targets.

What’s Next?

While the price action and indicator readings are positive, the wave count suggests LAYER could be nearing a local top.

According to the count, Solayer is in wave three of a five-wave upward movement. Wave three has extended considerably and has 2.61 times the length of wave one.

Moreover, the RSI is brewing a potential bearish divergence (orange), which, combined with the sub-wave count (black), supports the bearish short-term LAYER price prediction.

If the LAYER price begins to correct, the closest support will be $2.73, created by the 0.382 Fibonacci retracement support level.

Alternatively, wave three could extend to the 3.61 length of wave one and reach a new all-time high of $4.13.

While this is unlikely because of the divergences and the completed sub-wave count, it does not invalidate Elliott Wave rules and is still a valid scenario.

Local Top is Close

The Solayer price reached a new all-time high on April 30 despite a lackluster crypto market rally this week.

However, the wave count suggests LAYER is nearing the end of the most parabolic portion of the increase, and a correction will follow.

If that is the case, the closest support will be at $2.37, created by the 0.382 Fibonacci retracement support level.