Solana ($SOL) - Sleeping Giant | Vatsik
Evening Folks,
Here I provide some context around my analysis on Solana and I predominantly focus on specific technical criteria, I am a structural price action trader.
I think retail is sleeping on this giant - letting it drift away from portfolios via the uncertainty of its future, similar to that of Ethereum in 2019. This is fair, as an investor, to be wary of.
Will it recover, is the narrative of NFT's over, is FTX the collapse of Solana?
Time will tell, but from a purely objective and technical standpoint, I will let the chart speak for itself before making my ultimate decision.
Boiling it down - consolidation under resistance = bullish pressure and supply pinching -> asset appreciates in value (price).
We had bearish consolidation in Q4 of 2022 and lost support (see chart). Now? We are seeing bullish consolidation below resistance and about to lose 28 dollar area resistance imo - a major high time frame area of interest, much like 6k shelf on Bitcoin last bear market. Reclaiming this critical level is essential and powerful.
Solana is ranging within a downward sloping channel with shallow corrections, above a major market structure break (msb) at 15.5 dollars that has already been tested.
Hold the local 20 dollar support and origin of current leg breakout, hold the downward sloping channel's low, and of course hold my directional control point (DCP) at 15.5 (bears fully back in control below my DCP level) then price has no where to go but UP. Anything in the green zone, above my DCP, is bullish as bulls are in control. Higher lows on a trending asset = bullish.
Breaking red to the upside, on high time frame resistance, with multiple candle closes (Daily or H12) and we will push to the lower quarter range (QR) in the prior range we traded in mid-late 2022.
Channels don't disappear if they or broken, they tend to come back later, once price enters them again. They always exist and price likes to trade at them (up/down) - imagine your favourite spot to grab lunch, you likely frequent this location often and in turn have good and bad experiences there.
Eventually the macro range EQ and upper 50th percentile (higher QR and RH) will be tested, believe this.
If Solana survives this market and pulls out ahead, we will see new all time highs imo.
Again, while we sleep on it, it is making moves and following the above criteria, fundamentals aside, price will release with expansion on a supply pinch from initial and re-accumulation.
This range it is attempting to reclaim is only the beginning, until the real supply pinch occurs from the re-accumulation we are witnessing in front of our eyes right now.
Choose your side, I know mine.
Manage your risk and DYO! NFA
Vatsik
Here I provide some context around my analysis on Solana and I predominantly focus on specific technical criteria, I am a structural price action trader.
I think retail is sleeping on this giant - letting it drift away from portfolios via the uncertainty of its future, similar to that of Ethereum in 2019. This is fair, as an investor, to be wary of.
Will it recover, is the narrative of NFT's over, is FTX the collapse of Solana?
Time will tell, but from a purely objective and technical standpoint, I will let the chart speak for itself before making my ultimate decision.
Boiling it down - consolidation under resistance = bullish pressure and supply pinching -> asset appreciates in value (price).
We had bearish consolidation in Q4 of 2022 and lost support (see chart). Now? We are seeing bullish consolidation below resistance and about to lose 28 dollar area resistance imo - a major high time frame area of interest, much like 6k shelf on Bitcoin last bear market. Reclaiming this critical level is essential and powerful.
Solana is ranging within a downward sloping channel with shallow corrections, above a major market structure break (msb) at 15.5 dollars that has already been tested.
Hold the local 20 dollar support and origin of current leg breakout, hold the downward sloping channel's low, and of course hold my directional control point (DCP) at 15.5 (bears fully back in control below my DCP level) then price has no where to go but UP. Anything in the green zone, above my DCP, is bullish as bulls are in control. Higher lows on a trending asset = bullish.
Breaking red to the upside, on high time frame resistance, with multiple candle closes (Daily or H12) and we will push to the lower quarter range (QR) in the prior range we traded in mid-late 2022.
Channels don't disappear if they or broken, they tend to come back later, once price enters them again. They always exist and price likes to trade at them (up/down) - imagine your favourite spot to grab lunch, you likely frequent this location often and in turn have good and bad experiences there.
Eventually the macro range EQ and upper 50th percentile (higher QR and RH) will be tested, believe this.
If Solana survives this market and pulls out ahead, we will see new all time highs imo.
Again, while we sleep on it, it is making moves and following the above criteria, fundamentals aside, price will release with expansion on a supply pinch from initial and re-accumulation.
This range it is attempting to reclaim is only the beginning, until the real supply pinch occurs from the re-accumulation we are witnessing in front of our eyes right now.
Choose your side, I know mine.
Manage your risk and DYO! NFA
Vatsik
Vatsik