|

Solana price has Smart Money traps embedded in the price action

  • Solana price has breached the 50-day moving average.
  • SOL is coiling into a wedge-like pattern.
  • Invalidation of the bearish thesis is a close above $110.

Solana price could fall towards $80 to grab liquidity as the bulls have yet to show any interest in the $97 price levels. To create a climatic downslide, market makers could entice traders to open long positions in the coming weeks. 

Solana price says, "expect choppy fakeouts" 

Solana price is currently trading at $97 and coiling into a wedge-like pattern. The wedge pattern forecasts a 6-10% move which could take the price back to $105. However, analyzing the technicals proposes that this wedge could be a part of a larger complex correction. If traders get overzealous, Solana price could trap traders on the wrong side of the trend.

Solana price is back above the buyers' territory on the daily Chart, which confuses a bullish counter-trend move. However, the 50-Day moving average has already been breached and retested before being suppressed to the current $97 levels. The SOL price could continue to chop around this area before making way to $88 and $80

TM/SOl/4.27.22

SOL/USDT 4-Hour Chart

Traders should look for better opportunities in the market to avoid unnecessary losses. This Chart is very complex and does not forecast any significant moves at the moment. Invalidation of the current bearish thesis is a close above $110. If this price breach occurs, a revised count will be necessary. There is a slim chance Solana price could climb to $120, resulting in a 25% increase from the current 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.

More from Tony M.
Share:

Editor's Picks

Ripple and Stellar outlook: XRP and XLM await direction amid cautious sentiment

Ripple and Stellar trade cautiously as both tokens hover around key technical levels. XRP is testing resistance at its 50-day EMA, while XLM continues to consolidate around the $0.187 support zone. Meanwhile, mixed derivatives data with a slight bearish tilt suggests traders remain cautious, keeping the next directional move uncertain.

Crypto Market Overview: Bitcoin recovery eases – HBAR and LDO test key resistance zones

Bitcoin edges below $66,000 extending the previous day's losses. Hedera and Lido DAO sustain bullish momentum, testing the breakout of a crucial resistance zone to extend their rally. CoinMarketCap’s Fear and Greed Index at 39 stalls below the neutral territory, indicating that sellers remain dominant.

Senate Republicans release updated CLARITY Act with new crypto ethics restrictions

Senate Republicans released an updated version of the Digital Asset Market CLARITY Act on Wednesday following briefing calls with stakeholders. The update adds a package of ethics restrictions targeting digital asset activities by public officials and their spouses.

Hyperliquid, Robinhood could lead crypto’s next bull market as DeFi and TradFi converge
The next crypto bull market could be driven by the growing convergence between blockchain-based financial infrastructure (on-chain) and traditional finance (TradFi), according to Bitwise CIO Matt Hougan. In a report published late Tuesday, Hougan argued that crypto may be showing early signs of a market bottom, with Bitcoin gaining 9% since July 1 even as the NASDAQ 100 declined 6%.
Bitcoin’s potential recovery in the second half hinges on these 4 catalysts
Bitcoin (BTC) has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war.