✴️ Solana Will Grow But First, A Correction (Full Analysis)

Solana (SOLUSDT) grew for 322 days; From a low hit late December 2022 until recently (16-November). Total growth amounts to 752.5%.

I wouldn't be surprise to see a "small" and "healthy" correction develop here... Corrections have been ongoing through the entire move up.

Now, don't get me wrong.
Things can always change; Solana can move straight up.

But we look at bullish potential when things are down;
We consider bearish potential when everything is up.

The latest bullish wave, from 11-Sept through 16-Nov lasted 66 days.
The previous two waves this year lasted 36 and 56 days, this is the longest one so far.

After each of the previous waves we had a correction ending in a higher low followed by additional growth; normal market action.

We can expect something similar...

There is potential to go higher but I say it is healthy to see some sideways or a little down before more up.

It is good to see support levels being tested, this way we have a strong base for long-term growth.

Thank you for reading.

The smaller and medium-size Altcoins are in a completely different situation, at this point, they tend to grow and grow and grow... You can browse my profile going back to August, September and October to find all the best pairs.

Feel free to follow if you enjoy the content and would like to show your support.

Namaste.

Comment:

Yesterday Solana closed below EMA10:

It is the first this happens coming off a high point since July 2023.
Breaking below this level can indicate that a correction is about to develop.

An inverse H&S pattern can be seen on the 4H timeframe:

Notice how trading volume is high on the drop and low on green candle.

Patience is key.

Comment:

Here we are zooming in on the same Solana chart above:

➖ Notice the decreasing volume.
➖ We have the rounded top pattern which is quite accurate as a reversal signal.

➖ Prices still trade above EMA10 which is technically bullish, but the potential is bearish as we have a strong top (752% growth since late Dec 2023).

➖ The daily RSI hit even higher than January 2023:

When the RSI becomes overbought, it tends to correct all the way down, based on past history.

We let the market take care of the rest.
Things can change though, but the current bias continues bearish.

Namaste.

Comment:

Here is the weekly timeframe, we have the first red week after 5 green weeks.

Since July 2021 there has never been more than 5 weeks green.
Meaning to say that such action only happens within a full-blown bull-market.
Right now we are in the "recovery year", 2023.
The "full-blown bull-market" year is 2024.

In 2023 the maximum has been 4 consecutive weeks green with the exception of the last wave which was the strongest of the year. "The strongest bullish wave of 2023".

Each correction is composed of many sessions.
Never just one session red.
It is possible that Solana will now enter a strong correction, wave 4, based on the fact that we had strong growth, the strongest in years.

The correction can last between 2 and 3 months; rough estimate.
Even if additional bullish action takes place potential for a drop is now pretty high.

Buy low, sell high.

Namaste.

Comment:

The bearish bias mentioned in this trade idea is still valid and Solana just moved below its 16-November 2023 high, erasing almost a month of growth in a single day.

Watch out! This can develop into a major correction, even though it is still early.

Namaste.