SOL - what retrace levels to expect after the solid rally
Hello all,
SOL has been on a pretty solid uptrend recently. The coin last bottomed at $25.5 on 30.05 and since then has rallied more than 70 percent to the area above the $40-$42 resistance zone.
If we zoom out we will see that on the Weekly timeframe the SOLUSDT pair respected the long-term uptrend and did not allow a break blow the 21-period EMA perfectly rebounding from it in the last two weeks.
Going lower to the daily timeframe, the pair retraced by 67 percent during the last major pullback, but still managed to stabilize around one of the previous demand zones from back in April, 2021. It recovered quickly to test the $35 zone, which is of great significance since it successfully broke SOL's freefall on May 20 (it was also a serious resistance from back in late April). The move resulted in another pullback from which SOL came stronger turning $35 into support.
We come to the main part, which is the current trading zone of the Solana token. We can see clearly that the $41-$45 zone is a though one to break given the fact it is an old range already fortified and tested multiple times in the 26 April - 16 May period. It is also where the 61.80 percent Fibonacci level is located from the last pullback - the most important Fibb level in my opinion if we are looking for reversals. What is more, the Point of Control is placed exactly here, which means the trading activity in the zone is extremely high.
A retrace from here is imminent for the above-mentioned reasons. I will be looking for a long re-entry in the $39-$40 area just because going lower will open the door to a full retrace to $35 and another test of the support + it will mean a confirmed break of the 21-period EMA on the daily timeframe.
Second target for longs will be $37 - May 26 peak + 21-period EMA on daily
Regards,
SOL has been on a pretty solid uptrend recently. The coin last bottomed at $25.5 on 30.05 and since then has rallied more than 70 percent to the area above the $40-$42 resistance zone.
If we zoom out we will see that on the Weekly timeframe the SOLUSDT pair respected the long-term uptrend and did not allow a break blow the 21-period EMA perfectly rebounding from it in the last two weeks.
Going lower to the daily timeframe, the pair retraced by 67 percent during the last major pullback, but still managed to stabilize around one of the previous demand zones from back in April, 2021. It recovered quickly to test the $35 zone, which is of great significance since it successfully broke SOL's freefall on May 20 (it was also a serious resistance from back in late April). The move resulted in another pullback from which SOL came stronger turning $35 into support.
We come to the main part, which is the current trading zone of the Solana token. We can see clearly that the $41-$45 zone is a though one to break given the fact it is an old range already fortified and tested multiple times in the 26 April - 16 May period. It is also where the 61.80 percent Fibonacci level is located from the last pullback - the most important Fibb level in my opinion if we are looking for reversals. What is more, the Point of Control is placed exactly here, which means the trading activity in the zone is extremely high.
A retrace from here is imminent for the above-mentioned reasons. I will be looking for a long re-entry in the $39-$40 area just because going lower will open the door to a full retrace to $35 and another test of the support + it will mean a confirmed break of the 21-period EMA on the daily timeframe.
Second target for longs will be $37 - May 26 peak + 21-period EMA on daily
Regards,