SOL has made some incredible gains since the beginning of the year, and I believe that it has more room to grow. Every few days we hear about new partnerships (over 250 project in the ecosystem so far). Since coins don't run up forever it is always good to wait for pullbacks or areas of consolidation before entering. At present, we've had about 16 days of consolidation.
Now, who knows exactly when it is going to take off again. But we can see that SOL has been trading in the same channel for all of 2021. Additionally, we can see that we have had periods of consolidation longer than 16 days. Important to note though that the consolidation is longer when the price is in the upper end of the channel. In the most recent run up for SOL the price did not crack the middle line. Therefore, we should have a shorter consolidation period.
If SOL gives an indication that it is done consolidating I'll personally be jumping in. Bullish indicators would include an increase in volume, the MACD crossing the signal line, or the RSI (set to 10) turning sharply upwards. This would be the set of conditions needed to put SOL in the 75-80 dollar range.
I can see a situation though where SOL keeps running sideways to get closer to the 50 day MA. I don't really see it dipping, but I'd prefer not to have money tied up in something that is moving sideways.
I'll update this if we get a clear indication of where we are headed.
Please like, comment, follow, and trade at your own risk!
Now, who knows exactly when it is going to take off again. But we can see that SOL has been trading in the same channel for all of 2021. Additionally, we can see that we have had periods of consolidation longer than 16 days. Important to note though that the consolidation is longer when the price is in the upper end of the channel. In the most recent run up for SOL the price did not crack the middle line. Therefore, we should have a shorter consolidation period.
If SOL gives an indication that it is done consolidating I'll personally be jumping in. Bullish indicators would include an increase in volume, the MACD crossing the signal line, or the RSI (set to 10) turning sharply upwards. This would be the set of conditions needed to put SOL in the 75-80 dollar range.
I can see a situation though where SOL keeps running sideways to get closer to the 50 day MA. I don't really see it dipping, but I'd prefer not to have money tied up in something that is moving sideways.
I'll update this if we get a clear indication of where we are headed.
Please like, comment, follow, and trade at your own risk!