.png)
(This is NFA, please DYOR)
$SOL has continued its decline over recent weeks, now 27 trading days down from its current cycle peak at about $126. I am not one to blow my own horn, but the price action so far is right on track for the predictions I made almost a month ago, when most were calling for higher prices. To date, I have not seen anything in the charts that contradicts my current position, so for me and my portfolio, nothing has changed since the first instalment of this series.
Kicking it off with the $SOL / $USD 4H chart, I have illustrated a clear trading that $SOL is currently bouncing between. The resistance to the topside of this range is strong, seeing as it has now failed to break above it in five consecutive attempts. To the downside, there appears to be good support around the $87 mark, with price wicking and quickly recovering on 4 separate occasions, I believe this is due to it being a significant trading range in the previous cycle.
So, consecutive LH’s, and prices to the underside of the Ichimoku cloud indicate to me that this market has further to correct. In order to invalidate my current thesis, $SOL would have to break above both the trading range, and a previous swing high.
The daily timeframe portrays similar weaknesses in $SOL’s recent market action, with price now returning to, and failing to find support at the Ichimoku cloud. It is my expectation that it will soon trade to the underside of the cloud, confirming its weakness on a longer TF.
As I said in the intro, we have already seen a 27 day correction, which is roughly 40% of the approximately 70 days which I expect to see; there is light at the end of the tunnel. I do think certain ecosystem events such as the $JUP will re-excite many individuals, and there will be calls for $140 $SOL, but I only follow the charts.
.png)
A quick point for $SOL / $BTC. This chart shows $SOL’s relative weakness against $BTC, and should $BTC continue to trend downwards, it could well be devastating to $SOL / $USD. Remember, it is easy to make profits, it is much harder to retain them.
.png)
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.
Telegram