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(This is NFA, please DYOR)
Since the second part in this series, $SOL has failed to maintain its position above the macro 50% level, and is therefore on the weaker side. The Ichimoku cloud, an indicator which I regularly use also shows areas of support and resistance in the markets, illustrated by the green and red clouds.
The purple circles to the left of the chart shows how the market can use the cloud as support, bouncing from it, and continuing to trend higher afterwards.
Therefore, I am looking to the orange circle as the next support area for $SOL. Should this play out in favour of the bulls, I expect a breakout, followed by another retest of the cloud before attempting the target above in yellow.
Should $SOL breakdown from this support, the probabilities will be against the bulls, and it could indicate that the current top for $SOL has indeed formed.
Similarly to the $SOL/$BTC chart, $SOL has experienced a recent drawdown from $126, to $102 at the time of writing. These sort of pullbacks are perfectly reasonable, considering that $SOL has increased almost 1600% since it’s bottom of $8.
The next question is whether it can hold support at the cloud, and consolidate above it for a final test at its macro 50%. It’s worth pointing out that these are only 4H charts, so these are super short-term moves, but that is how longer term trends begin.
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I am still holding the view that I expressed in the previous thread. An intermediate top at $135 (should we even get there), and then a major correction of up to 70% over 3-4 months before reaching new cycle highs through the rest of the year and into 2025.
Thanks for reading! If you enjoyed this, drop a follow on X and Telegram to stay in the loop.
As always, stay safe and bullish,
ChefGunny.