Solana recently experienced a price breakout, followed by a significant 15% drop in two hours. This has led to the formation of a potential double top pattern, which is typically bearish. The current market sentiment appears undecided, with potential for both upward continuation and downward pullback.
The technical analysis suggests a sideways trading motion, with a potential range between $41.30 and $48.88. Nick dismisses the possibility of a cup and handle pattern due to the lack of a gradual curvature.
Anticipating a move down, Nick suggests that Solana may test the 50 EMA and 50 SMA, or even the 200 EMA. It is important to note that daily chart movements may take weeks to play out, highlighting the need for patience.
Weekly projections indicate the potential for corrections to the downside, with mentioned support zones around $14.32 to $15.50 and $18 to $20. Despite expected corrections, Nick remains bullish on Solana, suggesting confidence in a long-term positive trend.
Overbought conditions across various timeframes raise concerns about a potential shift in momentum and profit-taking.
Nick discusses the differences between bull markets and bear markets, emphasizing the importance of adapting strategies based on market conditions.
Nick provides two target ranges:
- Conservative target range: $240 to $617
- Optimistic target: $2,000 based on the one:1 ratio on the seawave pattern
Opportunity for Buyers
Pullbacks are seen as opportunities to buy into Solana, considering the positive long-term outlook.
Nick explicitly states that they are not a financial advisor and provides personal opinions based on their analysis.