Why being an early buyer of the Solana price is unnecessary


  • Solana price continues to print indecision candles on the 2-day chart.
  • SOL price shows thought-provoking volume profile signals.
  • Invalidation of the bearish downtrend remains a breach above $60.

Solana price from a risk to reward perspective is not a favorable digital asset to invest In. Here's what Solana needs to do to alter the bearish narrative.

Solana price is a scavenger's market

Solana price is one of the charts to consider observing from an academic standpoint but is still unfavorable for trading in the short term. It is quite uncertain where the SOL price wants to go next. 

Let's do a recap. Since all-time highs at $258, Solana price is down 88%, currently trading at $34.50. The centralized smart contract token has endured a steep wave 3-like decline, which is the most challenging and riskiest scenario to call a market bottom. The 2-day chart confounds this idea as consecutive indecisive candlesticks have been established, showing consolidation without retaliation from bulls that may or may not be in the market.

Counter-trend scalping a steep decline can be rewarding but, at the same time, extremely dangerous to one's portfolio. Textbook Elliot Wave theory suggests waiting for a breach of a declining rallies wave 4 to confirm when a downtrend may be over. The previous wave 4 is at $60, which leaves a 70% upside potential for bullish counter-trend trades. But based on the nature of the previous declines, the SOL price could wipe out any short-term gains in an unexpected blink of an eye.

tm/sol/7/4/22

SOL/USDT 2-Day Chart (Wave fractals also from the 2-day Chart)

Solana price has shown anomalous volume patterns on the daily and monthly charts. There is no doubt that the SOL price is setting up for a powerful move. But, because wave 4 at $60 has not been breached yet, this thesis will remain bearish. Bearish targets of $20 and $15 remain highly possible for the Solana price in the coming months unless the breach occurs. 

However, a breach of $60 could create a bullish market for the Solana price with targets in the $175 and $200 zones for up to a 500% increase from the current Solana price. Thus, there is no need to be an early bull scavenging 20-30% moves. Wait for wave 4 to get breached, a rally and a qualifiable pullback. This scenario will create a favorable market with plenty of bullish opportunities for traders, scalpers, and investors alike.


 


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.

Recommended content


Recommended Content

Editors’ Picks

Pro-crypto French Hill selected as Chairman of the House Financial Services Committee

Pro-crypto French Hill selected as Chairman of the House Financial Services Committee

Republicans selected French Hill as the new Chairman of the House Financial Services Committee. Hill is a crypto supporter and spearheaded the FIT21 bill for crypto regulations. French Hill will be replacing Chair Patrick McHenry, who is retiring from office.

More Cryptocurrencies News
Ethereum could see new all-time high above $5,000, on-chain data signals bullish momentum

Ethereum could see new all-time high above $5,000, on-chain data signals bullish momentum

Ethereum is up 1% on Thursday as it aims to tackle the selling pressure near the $4,000 psychological level. On-chain data shows that ETH has begun seeing increased bullish momentum, which could push its price to a new all-time high above $5,000.

More Ethereum News
Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink

Crypto Today: Bitcoin price tops $102K as Trump’s firm acquires Ethereum and Chainlink

Cryptocurrency market valuation broke $3.5 trillion Thursday, up 9.4% since Tuesday's market crash halt. In the last 24 hours, 104,700 traders liquidated $172.7 million in long contracts, accounting for 58% of the $298.5 million total liquidations.

More Cryptocurrencies News
Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery

Shiba Inu Price Prediction: SHIB set for $0.00004000 breakout as ETH leads market recovery

Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is SHIB on the verge of a major breakout? 

More Shiba News
Bitcoin: BTC reclaims $100K mark

Bitcoin: BTC reclaims $100K mark

Bitcoin (BTC) reclaimed the $100K level, trading near $100,100 on Friday after a recent decline earlier this week. The recent pullback in BTC was mostly due to high-leverage traders and some holders booking profits. Despite Microsoft’s rejection of adding Bitcoin to the company’s balance sheet, institutional demand remained strong, recording a total inflow of $1.72 billion until Thursday. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP