SOL / TetherUSShort
#SOLANA ⟶ A DROP IS COMING!!!
#Solana Analysis Summary
Daily Time-Frame ⏰
In the daily time-frame, #Solana is moving within two bearish channels, one green and one red (as shown) 📉.
After the recent drop, #Solana reacted positively to the mid-line of the lower channel and moved toward the top of the upper channel 📈.
Currently, it is struggling with the upper channel resistance.
In such cases, before continuing the upward movement and breaking out of the upper channel, we often see a pullback towards the mid-line or the bottom of the channel, from which growth can resume again.
................................
Let's break down the scenario further:
Before the upper channel is broken upward, there's a chance for a drop toward the following support levels:
Support 1: Midline of the channel
Support 2: Price range 139.42 - 141.40
Support 3: Bottom of the channel
After hitting one of these three supports, bottom formation can occur, and we may resume the bullish trend 📈.
However, if the upper channel is broken upward from the current zone in the daily time-frame (valid break and confirmation), growth will continue without pause towards the next growth targets 🚀.
................................
Important note on the lower time frame:
If growth happens from this zone, there’s a key detail that complicates things, which will be covered in the lower time-frame analysis I'll send later.
................................
Next growth targets in case of either bullish scenario:
🎯 Target 1: Price range 166.83 - 168.84
🎯 Target 2: Price range 195.93 - 202.33
................................
Stop-loss for the temporary drop scenario and continued growth (entering a deeper bearish phase):
If the upper channel is broken downward again, #Solana could continue its drop within the lower channel toward the mid-line and bottom of the channel 📉.
................................
Solana Analysis Summary
4-Hour Time Frame ⏰
In continuation of the daily time-frame analysis 📊:
Based on the daily time-frame, the next likely move is a drop 📉.
There are two possible scenarios for a drop towards the mentioned support levels:
Scenario 1:
Considering the touch at the top of the daily bearish channel and the break of the divergence trendline in the 1-hour time frame, this confirms the drop toward the mentioned support levels 📉⚠️.
Scenario 2:
A temporary rise to the 166.83 - 168.84 range, followed by a drop based on the rising wedge pattern, targeting the same support levels 📈🔄📉.
................................
When will growth toward the second target of the main analysis continue without interruption, even with the wedge-based drop?
If the price touches the divergence trendline in the 1-hour time frame, forms a bottom, rises again, and breaks the upper wedge line upward, without re-entering, then it can continue growing based on the continuation pattern of the rising wedge (without interruption) 🚀.
................................
Note:
Considering the position of the recent bullish trend-line (from the mid-line of the lower bearish channel), the first and second support levels have a higher priority for stopping the likely drop and forming a bottom compared to the third support 🛡️.
The third support (bottom of the upper bearish channel in the main analysis) can only act as a base for bottom formation if a reversal pattern like a double bottom forms at this level 📉💡
Daily Time-Frame ⏰
In the daily time-frame, #Solana is moving within two bearish channels, one green and one red (as shown) 📉.
After the recent drop, #Solana reacted positively to the mid-line of the lower channel and moved toward the top of the upper channel 📈.
Currently, it is struggling with the upper channel resistance.
In such cases, before continuing the upward movement and breaking out of the upper channel, we often see a pullback towards the mid-line or the bottom of the channel, from which growth can resume again.
................................
Let's break down the scenario further:
Before the upper channel is broken upward, there's a chance for a drop toward the following support levels:
Support 1: Midline of the channel
Support 2: Price range 139.42 - 141.40
Support 3: Bottom of the channel
After hitting one of these three supports, bottom formation can occur, and we may resume the bullish trend 📈.
However, if the upper channel is broken upward from the current zone in the daily time-frame (valid break and confirmation), growth will continue without pause towards the next growth targets 🚀.
................................
Important note on the lower time frame:
If growth happens from this zone, there’s a key detail that complicates things, which will be covered in the lower time-frame analysis I'll send later.
................................
Next growth targets in case of either bullish scenario:
🎯 Target 1: Price range 166.83 - 168.84
🎯 Target 2: Price range 195.93 - 202.33
................................
Stop-loss for the temporary drop scenario and continued growth (entering a deeper bearish phase):
If the upper channel is broken downward again, #Solana could continue its drop within the lower channel toward the mid-line and bottom of the channel 📉.
................................
Solana Analysis Summary
4-Hour Time Frame ⏰
In continuation of the daily time-frame analysis 📊:
Based on the daily time-frame, the next likely move is a drop 📉.
There are two possible scenarios for a drop towards the mentioned support levels:
Scenario 1:
Considering the touch at the top of the daily bearish channel and the break of the divergence trendline in the 1-hour time frame, this confirms the drop toward the mentioned support levels 📉⚠️.
Scenario 2:
A temporary rise to the 166.83 - 168.84 range, followed by a drop based on the rising wedge pattern, targeting the same support levels 📈🔄📉.
................................
When will growth toward the second target of the main analysis continue without interruption, even with the wedge-based drop?
If the price touches the divergence trendline in the 1-hour time frame, forms a bottom, rises again, and breaks the upper wedge line upward, without re-entering, then it can continue growing based on the continuation pattern of the rising wedge (without interruption) 🚀.
................................
Note:
Considering the position of the recent bullish trend-line (from the mid-line of the lower bearish channel), the first and second support levels have a higher priority for stopping the likely drop and forming a bottom compared to the third support 🛡️.
The third support (bottom of the upper bearish channel in the main analysis) can only act as a base for bottom formation if a reversal pattern like a double bottom forms at this level 📉💡
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.