Solana profit taking to present buying opportunity for SOL at $210
|- Solana price experiences profit-taking since making new all-time highs.
- Significant gaps between the candlesticks and certain Ichimoku levels hinted at a mean reversion.
- A retest of the prior resistance zone as support is necessary to help confirm an uptrend.
Solana price action has been a leader in the altcoin space, pushing into new all-time highs and pushing former heavy-hitting market cap cryptocurrencies lower. As a result, profit-taking before the weekend was expected.
Solana price presents a buy-the-dip moment during the weekend trade
Solana price is likely to give traders who missed the most recent advance a second opportunity to enter. The recent price drop was expected, especially given the significant gaps between the Thursday and Friday candlesticks and the Tenkan-Sen. One anomalous behavior within the Ichimoku Kinko Hyo system is how price action responds to gaps between the candlesticks and the Tenkan-Sen. Gaps are not tolerated for long in Ichimoku, and there is often a return to equilibrium within a few periods.
SOL/USDT Daily Ichimoku Chart
The likely level of near-term support that becomes a buying opportunity for Solana price is the $210 value area. $210 is between the daily Tenkan-Sen and Kijun-Sen and provides enough wiggle room should sellers push price ranges between the two. A hypothetical trade setup would be a buy limit order between $205 and $210 with a stop loss slightly below the Kijun-Sen ($192) and a profit target just above the 161.8% Fibonacci expansion at $266.50.
A signal that a deeper retracement may occur would be any daily close below $200. That would set up conditions for bears to push Solana price to the weekly 50% Fibonacci retracement at $150.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.