Solana Climbs Up the Stairs to a New all-Time High?
Solana (SOL) has been slowly and steadily moving to the upside like it is climbing a staircase. The staircase effect is an easy way to make sense of the technical picture, and it provides clear support and resistance levels to better time the market.
Staircase Effect
As the name suggests, the staircase effect happens when the price moves in a stairs-like pattern, consisting of a series of rising steps. Each step is a resistance level that turns into support once the price breaks above it.
There are some similarities between the “steps,” which are highlighted below:
1. The staircase pattern starts with a sideways movement that typically lasts 89 bars (using the 4-h timeframe)
2. On average, with each rising “step,” SOL has gained approximately 22%
When the sentiment shifts, the staircase effect will make the shift evident as support will start breaking down. Right now, the previous support comes down at around the $220 level. During each previous consolidation zone, we had a successful retest of the previous range. The current downside move towards the support follows the same pattern.
If the support level holds, we can expect the bulls to regain control and potentially send SOL to a new all-time high.
Staircase Effect
As the name suggests, the staircase effect happens when the price moves in a stairs-like pattern, consisting of a series of rising steps. Each step is a resistance level that turns into support once the price breaks above it.
There are some similarities between the “steps,” which are highlighted below:
1. The staircase pattern starts with a sideways movement that typically lasts 89 bars (using the 4-h timeframe)
2. On average, with each rising “step,” SOL has gained approximately 22%
When the sentiment shifts, the staircase effect will make the shift evident as support will start breaking down. Right now, the previous support comes down at around the $220 level. During each previous consolidation zone, we had a successful retest of the previous range. The current downside move towards the support follows the same pattern.
If the support level holds, we can expect the bulls to regain control and potentially send SOL to a new all-time high.