Hello Traders!
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- SOL on 1D time-frame chart has corrected around 30% from its all-time high at 260$ and has found good support at the 187$-190$ level. While the latest drop in price made a lower low on the chart, the Stochastic has made a higher low. This is a bullish divergence and may indicate that the correction is coming to an end soon. To confirm this, SOL’s price has to pass two key resistance levels found at 213$ and 233$.
- The volume decreased as the correction progressed. This is a bullish sign. It’s important to watch closely the volume once SOL tries to rally. If it has a sharp increase, that would show bulls are eager to get back into the action.
-The daily Stochastic made a higher low despite the price falling. This is a bullish divergence and a sign of strength for bulls. If confirmed, this can be followed by a strong rally.
-Overall the bias is neutral despite the bullish divergence. It is too early to act upon this divergence, and SOL’s price may need a bit more time to decide on the next steps. A break above $213 would be a good start towards a new rally.The price has to break the first resistance at $213 before SOL can rally higher. Until then, the consolidation can continue as bulls gather their forces. So long as the price does not fall under the key support at $190, SOL has a good chance to recover most of the recent losses.
Thank you,
Good Luck Traders!
- Please push the like button if you like the content or drop a comment to share your idea!
- SOL on 1D time-frame chart has corrected around 30% from its all-time high at 260$ and has found good support at the 187$-190$ level. While the latest drop in price made a lower low on the chart, the Stochastic has made a higher low. This is a bullish divergence and may indicate that the correction is coming to an end soon. To confirm this, SOL’s price has to pass two key resistance levels found at 213$ and 233$.
- The volume decreased as the correction progressed. This is a bullish sign. It’s important to watch closely the volume once SOL tries to rally. If it has a sharp increase, that would show bulls are eager to get back into the action.
-The daily Stochastic made a higher low despite the price falling. This is a bullish divergence and a sign of strength for bulls. If confirmed, this can be followed by a strong rally.
-Overall the bias is neutral despite the bullish divergence. It is too early to act upon this divergence, and SOL’s price may need a bit more time to decide on the next steps. A break above $213 would be a good start towards a new rally.The price has to break the first resistance at $213 before SOL can rally higher. Until then, the consolidation can continue as bulls gather their forces. So long as the price does not fall under the key support at $190, SOL has a good chance to recover most of the recent losses.
Thank you,
Good Luck Traders!