Technical Analysis
Good Morning!
Since Bitcoin (BTC) and Ether (ETH) are currently not playing, I have picked a token for today that is on fire: Solana (SOL).
Solana SOL (daily)
Are we in a 5-wave sequence? Yes, possibly. But it is hard to say where that Wave 5 might top out. If we assume that we are close to the top, then drawing Fibonacci levels can help in finding the area where the ABC-correction might stop.
The 61.8% Fibonacci retracement level makes some sense to me as it falls on the biggest liquidity pool we have seen since the coin was launched: 45 USD. Yes, it sounds brutal, but corrections between 50-70% are not unusual in crypto. Having said that, the Solana ecosystem is on fire and seems to be getting a great deal of risk capital, which has left the Ethereum chain. This is due to the same old problem with Ethereum: the high fees.
Solana SOL (4h)
When I zoom in to the 4h chart, I see, as a first good support level, the 72 USD area. This area also sticks out as it is a large liquidity pool level. Additionally, we have the upper band of the Ichimoku cloud coming in there as first support. Maybe this could be the point where the market forms an “A”.
There is a high dose of speculation in my analysis (which is usually the case when I try to use the Elliot-Wave theory). I will follow this coin closely and keep you posted if I see a major change in my outlook.
Happy Trading!
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