- Solana price continues to print indecision candles on the 2-day chart.
- SOL price shows thought-provoking volume profile signals.
- Invalidation of the bearish downtrend remains a breach above $60.
Solana price from a risk to reward perspective is not a favorable digital asset to invest In. Here's what Solana needs to do to alter the bearish narrative.
Solana price is a scavenger's market
Solana price is one of the charts to consider observing from an academic standpoint but is still unfavorable for trading in the short term. It is quite uncertain where the SOL price wants to go next.
Let's do a recap. Since all-time highs at $258, Solana price is down 88%, currently trading at $34.50. The centralized smart contract token has endured a steep wave 3-like decline, which is the most challenging and riskiest scenario to call a market bottom. The 2-day chart confounds this idea as consecutive indecisive candlesticks have been established, showing consolidation without retaliation from bulls that may or may not be in the market.
Counter-trend scalping a steep decline can be rewarding but, at the same time, extremely dangerous to one's portfolio. Textbook Elliot Wave theory suggests waiting for a breach of a declining rallies wave 4 to confirm when a downtrend may be over. The previous wave 4 is at $60, which leaves a 70% upside potential for bullish counter-trend trades. But based on the nature of the previous declines, the SOL price could wipe out any short-term gains in an unexpected blink of an eye.
SOL/USDT 2-Day Chart (Wave fractals also from the 2-day Chart)
Solana price has shown anomalous volume patterns on the daily and monthly charts. There is no doubt that the SOL price is setting up for a powerful move. But, because wave 4 at $60 has not been breached yet, this thesis will remain bearish. Bearish targets of $20 and $15 remain highly possible for the Solana price in the coming months unless the breach occurs.
However, a breach of $60 could create a bullish market for the Solana price with targets in the $175 and $200 zones for up to a 500% increase from the current Solana price. Thus, there is no need to be an early bull scavenging 20-30% moves. Wait for wave 4 to get breached, a rally and a qualifiable pullback. This scenario will create a favorable market with plenty of bullish opportunities for traders, scalpers, and investors alike.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.