Why being an early buyer of the Solana price is unnecessary pt.2
|- Solana price tests the final level of support as price hovers above a 21-day simple moving average.
- According to a fractal forecast, SOL price has a double macro scenario.
- Invalidation of the neutral thesis is a breach above $42.
Solana price had impressive trading opportunities last week. Still, the SOL price has a double scenario in the works that deems the digital asset unfavorable until further notice.
Solana price is too risky to entertain
Solana price currently trades at $38.34. Last week, the Solana price was a favorable digital asset for day traders and scalpers. It was mentioned in the last thesis that anything deeper than the current levels would be an apparent reason to exit the market. Traders now have a decision to make. If Solana price bottoms out here, a potential 16% rally targeting the $44 price zone could occur. If the bulls fail to find support at the 21-day simple moving average (SMA) that it finds hover above, the entire uptrend will likely be in jeopardy.
The Relative Strength Index does not show divergences to forecast a confident directional bias. For this reason, traders should zoom out and consider the broader scenario for Solana price once again. It has been mentioned that being an early buyer of the Solana price would be an unneccesary risk. The technicals for Solana price still suggest two different fractals have a possibility of manifesting. Being an early buyer comes at extreme risk on a macro level.
SOL/USD 12-Hour Chart Fractal Scenarios
At the current time, this thesis remains neutral. A breach above $42 will be able to invalidate the neutral outlook in the short term. If $42 were to get breached, the bulls could induce a rally targeting $60, resulting in a 66% increase from the current Solana price.
In the following video, our analysts deep dive into the recent price action of Solana analyzing key levels of interest in the market. -FXStreet Team
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