Why being an early buyer of the Solana price is unnecessary pt.2

Solana price tests the final level of support as price hovers above a 21-day simple moving average.
According to a fractal forecast, SOL price has a double macro scenario.
Invalidation of the neutral thesis is a breach above $42.

Solana price had impressive trading opportunities last week. Still, the SOL price has a double scenario in the works that deems the digital asset unfavorable until further notice.

Solana price is too risky to entertain

Solana price currently trades at $38.34. Last week, the Solana price was a favorable digital asset for day traders and scalpers. It was mentioned in the last thesis that anything deeper than the current levels would be an apparent reason to exit the market. Traders now have a decision to make. If Solana price bottoms out here, a potential 16% rally targeting the $44 price zone could occur. If the bulls fail to find support at the 21-day simple moving average (SMA) that it finds hover above, the entire uptrend will likely be in jeopardy.

The Relative Strength Index does not show divergences to forecast a confident directional bias. For this reason, traders should zoom out and consider the broader scenario for Solana price once again. It has been mentioned that being an early buyer of the Solana price would be an unneccesary risk. The technicals for Solana price still suggest two different fractals have a possibility of manifesting. Being an early buyer comes at extreme risk on a macro level.

SOL/USD 12-Hour Chart Fractal Scenarios

At the current time, this thesis remains neutral. A breach above $42 will be able to invalidate the neutral outlook in the short term. If $42 were to get breached, the bulls could induce a rally targeting $60, resulting in a 66% increase from the current Solana price.

In the following video, our analysts deep dive into the recent price action of Solana analyzing key levels of interest in the market. -FXStreet Team

Share: Cryptos feed

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.