Timeframe: 4 Hours
As observed over the past few days, Solana has experienced a significant downward move, which was expected. If you look at the chart, a pennant pattern had formed, which was squeezing and eventually broke to the downside. This breakdown led to a complete fulfillment of the supply zone, with Solana’s price moving toward the 155–165 range, which acted as a strong order block and support zone.
This move confirms two key points:
Strong Order Block: The 155–165 zone is a robust support area and order block.
BTC Correlation: Bitcoin has also been moving toward its strong support zone (89k–92k), which aligns with Solana’s price action.
Two Possible Scenarios for Solana
Scenario 1: Demand Creation at Current Levels (Higher Probability)
Solana is likely to create demand from its current levels, with two strong zones to watch:
$195 Zone: A key level where demand could materialize.
$230 Zone: A secondary target if the price gains momentum.
This is the more probable scenario, where Solana stabilizes and creates demand, either at
195 or 230, leading to a potential upward move.
Scenario 2: Further Downside (If BTC Breaks Support)
If Bitcoin breaks its strong support zone (89k–92k), which seems increasingly likely, Solana could experience another significant downward move. In this case, Solana might break below the 150–140 range, leading to a further decline. This would mirror the previous supply-driven move, potentially taking Solana much lower.
Summary
Current Support Zone: Solana has found support in the 155–165 range, which is a strong order block.
Scenario 1 (Higher Probability):Demand creation at 195 or 230, leading to an upward move.
Scenario 2 (If BTC Breaks Support): Further downside, potentially breaking the 150–140 range.
Note
My goal is to simplify the chart and help you understand the price action clearly. I avoid overloading the chart with unnecessary indicators or creating confusion. My analysis focuses on keeping the chart clean and straightforward.
Thank you!
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.
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.