In this video, Nick will be analyzing the technical analysis of Solana’s recent performance.
Salana is in a bullish trend on the hourly chart, supported by the 200 EMA, 50 EMA, and 50 SMA. A slight caution is advised as there might be a potential pullback, especially if hourly closed positions fall below the 50 EMAs and 50 SMAs.
Nick is also seeing a potential diagonal-based pattern, which suggests a continuation of the uptrend. When using the Elliot Wave Theory, Nick is seeing a potential move towards the $66 to $70 range.
Daily analysis shows positivity, with expectations of reaching $76 in the near future. It is important to understand the psychology behind the five-wave structure and to be aware of the potential for a future correction (Wave 2). Institutional selling during Wave 3 is often seen, with retail investors left holding the bag during Wave 5.
It is important to be prepared for future corrections, which could be caused by factors like FTX selling off Salana holdings or changes in the economic climate.
Weekly and Monthly Outlook
The weekly and monthly time frames show potential high targets, with a bullish outlook for Solana’s future.
Nick believes that Solana has the potential to reach $2,000 if this pattern plays out. However, it is important to remember that this is just a prediction and there is always risk involved in investing in cryptocurrency.