• Solana price struggles to maintain the gains it made on Wednesday.
  • Nearly all risk-on assets globally are under renewed selling pressure. 
  • Long opportunities do exist but require significant confirmation to mitigate risk.

Solana price continues to slide south as all of the post-Fed gains have thus far been wiped out. 

Solana price action in a tough spot 

Solana price, like the majority of the broader cryptocurrency market, experienced a major rally after the US Federal reserve confirmed another rate hike. SOL closed the Wednesday trade higher by nearly 9%, but is on track to lose all of those gains - and then some more. However, opportunities on the long and short side of the market are now present. 

A theoretical long opportunity for Solana price exists on the daily Ichimoku Kinko Hyo chart with a buy stop order at $120, a stop loss at $105, and a profit target at $187. The long entry is based on the confirmation of an Ideal Bullish Ichimoku Breakout - a strong signal that a new and prolonged uptrend is likely to continue. 

SOL/USD Daily Ichimoku Kinko Hyo Chart

The theoretical long setup represents a 4.47:1 reward for the risk. The projected profit target is just below the 161.8% Fibonacci expansion. Some profit-taking near the 100% Fibonacci expansion at $147 is likely to occur. 

The long trade idea is invalidated if Solana price hits $75 before the entry is triggered. 

Solana price has a strong probability of continuing the current downtrend on the short side of the market. On the $2.00/3-box reversal Point and Figure chart, SOL has a hypothetical short entry with a sell stop at $88, a stop loss at $96, and a profit target at $50. 

SOL/USD $2.00/3-box reversal Point and Figure Chart

The theoretical short entry is based on a pattern in Point and Figure analysis known as a Pole Pattern. The entry occurs if the current X-column fails to reach 50% of the prior O-column. If Solana price moves to $100 before triggering, the short entry is invalidated.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP