We're now trading below the 50-MA, not a good sign. There is also a descending trendline (blue) that is creating the path for further downside.
We need to see the gold ascending trendline hold as support for us to find a good swing trade setup to go long.
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Things to understand and consider...
Solana is overbought on the daily and weekly but Solana does what Solana wants to do.
There is a chance we could dump to $174, however, I believe that to be unlikely given the fundamentals.
ALT coin season is EXPECTED to be...
If we break the neckline (orange) we'll find support very close below it. However, I give it a low probability that the H&S pattern plays out, that we go all the way down to that support zone. Let's see!
Should we break the top of this mini-channel and head to the top of the MAJOR channel (purple line) then watch for a retest of the mini-channel (red line) with a confirmation of support and a continuation. Should we break the mini-channel to the downside, the first level of support is $233, followed by $220.
All the news, partnerships, Brave and The Graph, and all the other bullish cookies reinforce my narrative of a $300.00 Solana by November 18th.
Right now, the cycle is repeating whereas FOMO traders are pushing BTC up with maximum leverage. As Bitcoin dominance starts to faulter and we see a big correction, ALT coins like Eth and Sol will rip.
My short term...
I point out important items in my included chart. If you enjoy my TA, please consider liking and following. Thanks!
1) The all important ascending trendline (GOLD) that has been the most influential TA asset since the 10X run this year.
2) The POSSIBLE Head and Shoulders pattern.
Should Solana break through the golden trendline and the neckline of the H&S...
Hackathon had over 500 submitted projects, more than ever in history of the famous token. Why is this so important? Because I believe, this reaffirms the fundamentals, the case to be made that Solana is going to be multiple thousands of dollars in the not-to-far-future. I also believe earn-to-play games will be built on SOL which will grow into a trillion dollar...
Shown in the chart - you can expect either we break the descending trendline and make new higher highs, or we get rejected and retest the nearest support level. Should that level fail, we will drop to the MAJOR support area before continuing higher.
Viewing my previous charts you can easily see that we are very bullish Solana, especially when we look at the daily time frame. Also, the fundamentals are all bullish as well.
However, for the 4-hour chart we can easily spot a bearish divergence on the RSI that correlates with our bullish channel within a channel.
If we drop to $200.00 I would load up as your...
We want to buy what's hot but much of the time, trader's FOMO into a pump and don't have good risk/reward systems in place.
The 2nd area marked is HIGHLY UNLIKELY to be touched, given the support strength of the 1st area.
PATIENCE IS KEY!
I measured the low to high or our last leg up to $216.00 and found that it corresponds with the drawn ascending channel (which is unconfirmed). We also looked at the RSI and can see a possible path for it to start working it's way to the 90 level (shown in the two green boxes).
With ALT coin season, the Solana hackathon in November, and BTC dominance (BTC.D)...