Brief Analysis——SOL(Recap)We briefly analyzed SOL a few weeks ago and we gave it a bullish rating when the price was around 30. Now, SOL has almost doubled, and the volatility has increased significantly. So let's do a review of SOL and see how it goes.
Although FTX continues to transfer SOL to the exchange and sell off during the past period, SOL has pumped and become one of the tokens with the largest increase in the past few weeks.
We can see that SOL has shown signs of a callback last week, but the bulls strengthened and continued to rise, setting a new high. But yesterday, the long red candle covered the gains of previous day. At a large level, SOL continues to maintain a bullish trend as shown by the ME indicator. From the WTA indicator, we divide the entire rising process of SOL into three areas. In the first area, whales appeared one after another, leading SOL to rise healthily. In the second area, the appearance of whales is accompanied by fluctuation and upward pin-bars, which means that whales may start to take the profit, but retail investors are supporting the price (green and gray columns increase). Fortunately, shrimp's efforts have kept prices fluctuating at high levels, attracting new whales. Then the third round of increases has begun. In the red area, whales appear during the rise. Similarly, during the subsequent pullback, whales leave the market urgently, and many candles with long upward pin-bars appear. This is a classic scene of the end of a bullish trend. Although the long green candle still appeared later, without the support of the whale, it was covered by the long red candle.
To sum up, SOL’s bullish trend may have ended and a correction is imminent.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
