JB from Cheeky Crypto Weighs In
Solana (SOL), the high-throughput blockchain known for its speed and scalability, has seen a significant price surge in recent days. However, some analysts are warning that this could be a fake pump, and that lower lows could be on the horizon.
Technical Analysis Points to Potential Correction
In a recent video analysis, JB from Cheeky Crypto examined the 4-hour chart for SOL and noted a retracement area between $23.60 and $298. He suggested that the recent move is corrective, not impulsive, and that the price is trading above key moving averages.
However, JB also pointed out that technical indicators such as the Stochastic RSI and RSI are showing signs of overbought conditions. He did not detect any bullish or bearish divergence, but he did say that he expects a healthy correction with a potential drop between $14.83 and $12.82.
Trend Line Analysis Suggests Potential Resistance
JB also observed a wedge pattern on the daily timeframe for SOL. He mentioned potential resistance at a trend line and said that the price’s reaction to this trend line will be important for determining future price direction.
Weekly Chart Shows Potential for Further Downside
On the weekly chart, JB analyzed the c-wave in a bear market scenario. He speculated that the bottom could be in for SOL, but he also highlighted a potential 80-89% drop if the c-wave continues.
Conclusion
Overall, JB encouraged traders to be cautious and to use tight stop losses. He also invited viewers to share their opinions in the comments section.
