What happens if Solana rebounds? SOLUSDT Swing ChartSolana, alongside Ethereum, has been one of the most criticized projects during this downturn.
Issues such as Pump.fun’s reckless meme coin launches and the Trump coin controversy have fueled negative sentiment. As a result, I’ve noticed that many people are now mocking Solana along with Ethereum.
Given these factors, I analyzed Solana’s rebound potential, and I’ve observed some promising signs.
The first reason is the end of the decline due to a BSL Sweep.
I typically observe how far a drop extends when liquidity removal (Liq Sweep) occurs at the upper or lower range (BSL, SSL). Based on this, I generally assess the situation in two ways
For example, when liquidity removal occurs at BSL, I assess whether the price could drop further down to SSL.
I define the BSL-SSL zone as a single range and look for potential rebound areas around the 50% midpoint of this range.
If scenario 2 occurs, there are many aspects to consider, but to put it simply, we can look at the possibility of a rebound through the Premium Zone, a concept from ICT theory. Within this zone, we analyze various key levels.
The Premium Zone can be understood as an area where Smart Money can exit their positions once the price reverses. Just like retail traders, Smart Money must sell their positions to realize profits.
Since the short positions taken at BSL are likely to be substantial, closing these positions would reduce selling pressure. As a result, this decrease in selling pressure could lead to a price increase.
I believe that the current Solana chart has reached the Premium Zone after a retracement caused by the BSL liquidity sweep.
Additionally, I have observed a Shark Pattern, a type of Harmonic Pattern, which suggests a potential rebound scenario.
Harmonic Patterns are chart patterns based on Fibonacci ratios used in technical analysis to predict potential reversal points in price movements.
These patterns frequently appear in the market, and they are structured around specific Fibonacci retracement and extension levels. When price movements align with these ratios, a recognizable harmonic structure is formed, signaling a possible reversal.
Additionally, Harmonic Patterns generally have four key target points based on Fibonacci retracement levels:
1. When measuring between C Point and D Point using the Fibonacci retracement tool, the typical targets are:
38.2%
50.0%
61.8%
2.If the price retraces properly, it can extend further up to the D Point.
For this Shark Pattern, I currently identify the D Point at $125.52, which represents the current low. *Personally, if the price falls below this level, I believe it could drop further down to the X Point.
Regarding the C-D leg of the Harmonic Shark Pattern, the typical extension ranges between 0.886% and a maximum of 1.13%.
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I always find it challenging to wrap up my analysis smoothly, but I hope this perspective provides some insight.
As always, this is just my personal opinion, so I encourage you to review it with an open mind.
Thank you!
