SOL - 100$ or 80$, what is next?
SOL has been defending this huge support around ~120$ for several months now but I'm afraid we are going to see a drop below this area very soon. The price action of the last few weeks clearly have the characteristics of a SHS pattern, with the head located around 184-190$. So this would give us a target of ~80$ but really not sure if it's going to drop that low.
However, pretty sure we are going to see at least 100$ getting tested, there is just too much liquidity resting below 120$ (triggered stops and liquidations that is), so it could drop to 100$ and see a quick recovery above 120$. From there I won't dare to predict what could happen next.
So, if we see SOL approaching the green zone again and not see a big bounce but rather see momentum slowing down, it's just a matter of time until it's going to drop IMO.
Timing this can be difficult, especially if you want to short this (which I would NOT recommend). Better play would be to wait for a long entry around 100$ on low leverage and build your position throughout a possible bottom formation and add on a clean break and retest of 120$.
Stay safe!
However, pretty sure we are going to see at least 100$ getting tested, there is just too much liquidity resting below 120$ (triggered stops and liquidations that is), so it could drop to 100$ and see a quick recovery above 120$. From there I won't dare to predict what could happen next.
So, if we see SOL approaching the green zone again and not see a big bounce but rather see momentum slowing down, it's just a matter of time until it's going to drop IMO.
Timing this can be difficult, especially if you want to short this (which I would NOT recommend). Better play would be to wait for a long entry around 100$ on low leverage and build your position throughout a possible bottom formation and add on a clean break and retest of 120$.
Stay safe!
Catatan
So far it's following my idea. Dropped to 120$ followed by a weak bounce. Now, if SOL stays below ~127$ over the next few days we should see another, probably much larger drop. As I said, 100$ is likely but could go as low as 80$. Catatan
Bounced a bit higher than expected, but if you are a bear, this is where you short. Risk/Reward still is in favor for bears, think a strong push above 140-142 would confirm a bear trap.
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