Solana be going range high? or it'll breakout and go down?
As of August 16, 2024, Solana (SOL) is positioned at the range low within the discount zone, presenting an ambiguous outlook due to recent price action. The current technical situation suggests that further clarity is needed, potentially requiring two confirmation candles to determine SOL’s direction.
Bullish Scenario:
If SOL closes a candle above the discount zone, specifically above $143.375, it would indicate a bullish trend with a potential move towards the range high or premium zone. In this case, going long on SOL would be a strategic choice, anticipating upward movement towards these higher levels.
Bearish Scenario:
Conversely, given the typical correlation with Bitcoin (BTC) and the broader market dynamics, there is a possibility that SOL could test $138.641. Should SOL close below this level, it would confirm a lower trend breakout and a change of structure (BOS), suggesting a bearish phase. In this scenario, shorting SOL would be advisable to capitalize on potential downward pressure.
In summary, SOL's current positioning at the range low within the discount zone presents two potential paths. A close above $143.375 would favor long positions towards the range high or premium zone, while a close below $138.641 would signal a bearish breakout, making shorting a viable strategy. Traders should monitor for confirmation signals to guide their trading decisions effectively.
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