- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.