Deeper Waters for SOL?
SOLUSD There is a lot to cover in this chart layout.
I have decide to publish a new idea for SOL. Seeing how it has been reacting the USDT.D pumps, It may retrace deeper than I originally anticipated.
While the market moves in inverted correlation to USDT.D, this is a useful chart to help determine critical pivots in crypto assets. So I have USDT.D chart pulled up on the bottom and SOL above it.
SOL’s correctional phase from March to August 2024 was a -47% pull back from it’s high to the low in that area. Compared to USDT.D at that time; which bolted on +78%.
Now SOL is showing signs of fear and weakness. Noticing how much pull back there has been for SOL; and USDT.D has only increased 32% since December; This suggests that there may deeper areas for retracement for SOL if USDT.D continues to move on up.
However this only applies if USDT.D makes it to my targeted area ( 1:0.618 ) as mentioned in my previous USDT.D post. (
If USDT.D does in fact reach my target; It’s looking like a possible 1:1.618 3 Wave correction could be in the playbook for SOL. Which would bring it slightly under its previous low from August 2024.
But its moments like these that shake out weak hands and instill fear before the major rally begins. And the Trend based Fib tool suggests that this moment could begin between March and April.
Good Luck!
Note
This choppy area here looks like buying pressure is increasing. A bounce right off of the 1.786 with a large bottom wick. There could be a minor wave up from this ratio; let's see how it develops. Note
SOL dominance on the rise. This decreases the chance of SOL hitting my targeted area. 
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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.