SOLANA UPDATE
Updated
SOLANA has been one of the best performing large caps this year. A strong L1 project that has an ATH of $260 from the previous Bullrun that has made a huge rally off the lows.
My pessimistic side is worried that the rally has been exhausted, we've reached HTF RESISTANCE as well as a STRONG BEARISH DIVERGENCE. There is a strong case to be made that using TA this would be a great place to take profits. Not necessarily go short, but de-risk and enjoy what would have been a roughly 5x from lows.
We also have SOLANA being used to buy SOL memecoins, we're seeing this across the board with AVAX and INJ too, we've reached the memecoin phase of the run which also leads me to believe this move is coming to an end. Just how long the memecoin run will last, who knows, but it will come to an end as they always do, and usually very suddenly.
For now TA says to de-risk, however FA is running the show for now, we'll see for how much longer.
My pessimistic side is worried that the rally has been exhausted, we've reached HTF RESISTANCE as well as a STRONG BEARISH DIVERGENCE. There is a strong case to be made that using TA this would be a great place to take profits. Not necessarily go short, but de-risk and enjoy what would have been a roughly 5x from lows.
We also have SOLANA being used to buy SOL memecoins, we're seeing this across the board with AVAX and INJ too, we've reached the memecoin phase of the run which also leads me to believe this move is coming to an end. Just how long the memecoin run will last, who knows, but it will come to an end as they always do, and usually very suddenly.
For now TA says to de-risk, however FA is running the show for now, we'll see for how much longer.
Note
A new range looks to have been established for now between $89-$128. I think anything between these two extremes of the range is just noise and could potentially be a good range to trade within. History has shown that wicks do tend to get filled, because of the flash crash we experienced yesterday we now have a wick that needs filling at the bottom of the range at $89.
Bullish case : slow grind back up towards range high ---> consolidate under the local high ---> flip S/R & push towards the $140 supply zone. (Then potentially look out for a SFP @$140 to target $89 retest).
bearish case : Move to fill in the wick at range low, slow grind down towards $89 before next move.
Note
SOL is respecting the key S/R levels still very well. The highs were capped at the $207.51 S/R line near perfectly before gradually bleeding off into the support line of $128.95.
Looking at the chart we could see a period of ranging between these two key levels, especially is BTC ranges at current levels. Should BTC behave in the short/mid term this wouldn't be a bad place to LONG some SOL.
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