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Solana price prints a questionable monthly settle, is smart money planning a move?

  • Solana price prints an anomalous candlestick on the monthly settlement.
  • SOL price has seen an uptick in volume.
  • Invalidation of the bearish trend is a breach above $45.

Solana price prompts investors to keep their eyes on the centralized smart contract token as the SOL price has been notorious for displaying mixed signals prior to pivotal turns in the market.

Solana price has smart money influences 

Solana price could be attempting to fool traders once again. On June 30, 2022, the centralized Ethereum killer printed a questionable monthly candlestick. The bearish engulfing candle shows subtle signs of bullish influence as the SOL price settled at $33.76, 30% above the low marked $25.86, yet 27% below June’s high at $46.12. The candlestick also presents an extreme influx in transactions on the Volume Profile indicator. This anomaly provokes the idea that something significant will occur for the Solana price in the coming months.

Solana price tricked bullish traders once before in September of 2021. A bullish candlestick was printed with large amounts of volume. However, the settling price at $141 was marked 34% below the monthly high at $216 and only 30% above the monthly low at $105.89. Four months later, in January 2022, after minimal gains and a stalemate price action, the Solana price finally saw the repercussions of the anomalous monthly candlestick. The bears flexed a 60% liquidation into $80, wiping out all of the profits since September 2021.

tm/sol/7/1/22

SOL/USDT 1-Month Chart 

There is no question that smart money likes to operate on large timeframes. Being able to hunt for subtle cues on monthly and yearly charts can provide context to when a market’s behavior might change. As far as the Solana price is concerned, traders should not get overly confident. Yes, we are still in a bear market across the board unless Bitcoin can breach $23,500. However, things can change rapidly, so it is best to keep an eye on the anomalous cues that some of the more popular digital tokens may present in the coming weeks. 

Invalidation for the bearish downtrend on Solana price is a breach above $45. If the bulls can hurdle this boundary, they could induce a rally towards $90, resulting in a 150% increase from the current Solana price. On the contrary, if the bulls do not show up to support the $35 barrier soon, the SOL price could continue falling to $20, resulting in an additional 40% loss.

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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