Strong bearish candle on daily along with a break down out of our channel on the 4hr pointing to short term bearish momentum to continue for Solana. Can we hold above $120 and maintain support?
https://t.co/qeAbxMF5as
A little over a week ago we looked at Solana at around $135. We saw price action play out somewhat like we had anticipated but with a bit more than a "bounce". Price surged up to $180 after Trumps mention of creating a U.S. crypto reserve with Solana being included in the plan.
Price failed to break and hold above our reversal zone (gray levels on chart) which then resulted in a sharp decline in price back to where we were before trumps announcement on the crypto reserve.
We're currently at a key level of support within this $120-$110 range. It's possible we start to see some buying activity and maybe begin to level out a bit as investors may see value at the current price.
Also in another scenario, our 50 EMA on the chart in blue has crossed below our long term 200 EMA signaling toward strong bearish momentum to continue. There is a good chance we break through support here and head towards testing whatever levels of support we may have left which appears to be around $80-$100.
From here I'd like to see more organic PA play out rather than any news related pumps. Over the next few days we'll monitor price close at these levels and revisit our analysis and see how things played out.
The sell off continues, SOL has blown through whatever main structures of support we thought we've had up to this point. Today we've touched $130 and are currently sitting around $135 finding some relief at the moment.
This relief may be a repeat of what we've seen at the previous levels of support where we see some bulls come in looking to long where we range shortly before the continuation of the down trend. Small bounce here then a continuation down to test in the $120-$110 range indicated by the level in gray on the chart.
A few things have been hindering us from seeing any type of a bounce currently. Mainly word of market manipulation, the unlock of SOL coming up in March, and just a chain reaction of negative events that have taken place within the space to fuel the bearish energy. To be fair the whole market is bleeding not just SOL.
No matter the sentiment we are still active and looking for opportunities and finding them in Kanto. The market changes we adjust and keep it pushing. Right now just on cruise control waiting for the dust to settle and being more selective with trades. Bullish or bearish whatever mindset you choose there's still money to be made.