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Solana price displays mixed signals as bulls breach $90

  • SOL price has a disproportionate wave structure.
  • Solana price has yet to establish a strong countertrend candle.
  • Invalidation of the bearish model is a close at $100.

Solana price current uptrend move looks questionable. If $100 is not breached, traders should expect a $77 Solana price in the future.

Solana price could print one more low.

Solana price is displaying disproportionate price action. The current downtrend looks unbalanced compared to the previous sell-off from $140 to $100. The $100 to $80 sell-off could be going through a temporary retracement before more downslide occurs. The next target for the bears is $77. 

Solana price has yet to establish a bullish candle to imply a countertrend rally will continue. Solana price could produce more sideways price action from here on out until the next bearish target is breached. An early indication to validate this bearish thesis would be a triangle formation at the current $90 price level.

TM/SOL/5.4.22

SOL/USDT 4-Hour Chart

Invalidation of the bearish model must be close to $100. If this bullish event occurs, the bulls should have enough steam to carry the SOL price to $110, resulting in a 20% increase from the current Solana price.  

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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