As Solana’s price experiences a downward correction, fear grips the hearts of many investors. However, amidst the bearish sentiment, there lie opportunities for astute traders and discerning investors. In this article, we’ll delve into the technical analysis, smart money concepts, and long-term outlook for Solana, providing insights into its potential trajectory.
Technical Analysis: Hourly Chart
On the hourly chart, Solana paired with USDT exhibits a bearish trend, characterized by a completed wave five high followed by a downside rejection. A potential reversal could occur in the short term, targeting a range of $47 to $57. Additionally, the death cross formation and resistance levels posed by the EMAs (200, 100, and 50) further reinforce the bearish outlook.
Smart Money Concepts and Structure
The hourly chart paints a bearish picture, with a bearish swing low on the A-wave marking a change in characterization. The lack of a confirmed break in structure suggests a wait for a lower low for confirmation. Stochastic RSI and stock castic RSI also indicate negative short-term prospects.
Daily Chart Analysis
From an Elliott Wave Theory perspective, Solana currently occupies a wave four position on the daily chart. A potential completion of wave three, followed by a pullback, could take the price to $76.98. The daily chart also reveals a bullish pattern, supported by EMAs (200, 100, 50) trading below price. Furthermore, Stochastic RSI on the daily chart hints at a shift in momentum towards the upside.
Weekly and monthly charts show Solana trading in an overbought range, suggesting potential corrective moves before a possible impulsive break above $92. Achieving daily targets of $76 and $92 is crucial for maintaining bullish momentum. Price projections for Solana’s future range from $250 to a staggering $7,000.
While acknowledging the possibility of corrections and opportunities to purchase at lower prices, the looming time bomb of billionaire investors’ token lockup until 2025-2027 raises questions about their potential actions during price rallies. Will they hold or dump their positions?
Retail investors must stay informed and prepared for potential market moves. Engagement through likes, subscriptions, and participation in the Cheeky Crypto Discord community is encouraged. As we conclude, the question remains: what will billionaire investors do? Stay tuned for further developments.