Jonathan Morgan
Independent Analyst
- Solana price bounced strongly after experiencing a more than 7% loss on Wednesday.
- Buyers have returned but must move Solana above key resistance to maintain momentum towards new all-time highs.
- Bearish fakeout pattern in Point and Figure analysis could trigger massive spikes higher.
Solana price remains a leader in the altcoin space, giving many examples of why it's referred to as an Ethereum-killer. While the bounce has been significant, bulls will need to add more conviction to the intraday rally to carry Solana forward; otherwise, short-sellers will likely capitalize on the weakness.
Solana price could trap short-sellers above $255, but failure by the bulls could trigger aggressive selling pressure
Solana price is highly likely to confirm a powerful bear trap pattern in Point and Figure charting known as the Bearish Fakeout pattern. This pattern develops when a multiple-bottom has two Os forms below, then an X-column forms and creates a bullish entry. This hypothetical long setup has a buy stop at $225, a stop loss at $205 and a projected profit target at $355. A trailing three-box stop would help protect any presumed profit after the breakout.
SOL/USDT $5.00/3-Box Reversal Point and Figure Chart
The bullish trade idea is invalidated if Solana price moves below $180.
A hypothetical short trade also presents an opportunity. A break of a double-bottom at $180 would coincide with a break of the bull market trend line, thereby converting Solana price into a bear market. Additionally, momentum may be strong enough to see Solana move below the subjective trend line (black trendline), increasing selling pressure. The theoretical short idea is a sell stop order at $175, a stop loss at $195, and a profit target at $115.
SOL/USDT $5.00/3-box Reversal Point and Figure Chart
The short trade idea is invalidated if Solana price moves above $220.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.