SOLANA has an ATH of $267, ~1300% from current price. With this huge upside potential/ almost minimum for the next Bullrun Q3/Q4 '24 - '25 it's an important token to stay up to date with, Here is a breakdown of current price action on the 1D:
SOL has been stuck in this range since November '22 that was created by the collapse of FTX. SOLANA's connection to the exchange sent it spiralling -68% over just 4 days.
Like most cryptos, SOL started to rally with the yearly open as BTC began climbing and altcoins following suit. The Bullish OB created from this initial rally was recently tagged last month which is made up of the point of control & value area low of the volume profile making the local low.
Purple key support and resistance areas that sit around the range midpoint area is controlling the majority of this choppy price action. Quarterly segments can be used to trade between, often bouncing between 0.25 to midpoint $15-23.
If SOL flips 0.5 midpoint next step is to push up to bearish OB key area. If/when that gets flipped and consolidated above, no doubt the range high of $38 is the next stop as the volume is thin and the FVG needs filling. That move would complete the recovery of the FTX event.
In my opinion I'm not convinced the bottom has been and done, yes price is down >90% from ATH, we still have macro economic problems with recession looming and almost a year to wait for the next BTC halving, the catalyst for the next bull market. I believe there will be an opportunity to buy lower for long term holds back up to that ATH, However this does not necessarily mean to go Short from here, if anywhere it would be range high $38.
SOL has been stuck in this range since November '22 that was created by the collapse of FTX. SOLANA's connection to the exchange sent it spiralling -68% over just 4 days.
Like most cryptos, SOL started to rally with the yearly open as BTC began climbing and altcoins following suit. The Bullish OB created from this initial rally was recently tagged last month which is made up of the point of control & value area low of the volume profile making the local low.
Purple key support and resistance areas that sit around the range midpoint area is controlling the majority of this choppy price action. Quarterly segments can be used to trade between, often bouncing between 0.25 to midpoint $15-23.
If SOL flips 0.5 midpoint next step is to push up to bearish OB key area. If/when that gets flipped and consolidated above, no doubt the range high of $38 is the next stop as the volume is thin and the FVG needs filling. That move would complete the recovery of the FTX event.
In my opinion I'm not convinced the bottom has been and done, yes price is down >90% from ATH, we still have macro economic problems with recession looming and almost a year to wait for the next BTC halving, the catalyst for the next bull market. I believe there will be an opportunity to buy lower for long term holds back up to that ATH, However this does not necessarily mean to go Short from here, if anywhere it would be range high $38.
Comment:
Thanks to Ripples win against the SEC, SOL has taken off like a rocket blasting past 0.5 & 0.75 line in the range. With a high of near $33 & BTC yet to breakout. The range high of $38 is in sight should we get a second round of rallies.
Admittedly the XRP news caught me side-lined as I thought SOL was short term over extended from a TA point of view. Just goes to show FA can completely overrule TA in big news moments so I won't forget that in the future.
Admittedly the XRP news caught me side-lined as I thought SOL was short term over extended from a TA point of view. Just goes to show FA can completely overrule TA in big news moments so I won't forget that in the future.
A potential SFP is in the early stages as price has now dropped below previous high, acceptance below this level and weakness in BTC could lead to a drop back towards 0.25 level and even fill inefficiency at bullish OB & volume profile POC.
After a 24h increase of +10% SOL is over extended in my opinion in the short term and the market looking to punish late longs.
HTF SOL looks good however jumping onboard now is LTF risky as the bulk of the move has gone in my opinion.