It’s Been A Harsh Few Months
Alts in general have suffered quite extensively over the past few months and Top 10 project Solana is definitely not excluded. Solana experienced many challenges over this period, which obviously didn’t help much to counteract the general market trend. After reaching a high of $260 in November last year, Solana has been steadily losing value. SOL is currently trading at $85.77 at the time of writing. I have made mention that I began accumulating SOL approximately two months ago, as I discerned value entering into the equation. ADA is another project that is looking quite good at approximately $0.80 but I would only become interested at $0.60. There are a number of alts that are remarkably close to breaking out from long and heavy bearish patterns. Solana is actually on the cusp of possibly confirming a breakout right now!
If Solana can move above $90 towards the $100 mark, there is a good chance that this breakout is the real deal. There is also the very strong possibility that SOL moves higher and then returns to retest the breakout level. This is the preferred outcome as there is a more trusted confirmation, due to bouncing at the previous resistance.
Let’s Take A Closer Look
It is quite clear to see in the chart below that Solana has experienced some heavy downward action and is extremely close to a trend reversal. I want to see a strong move past $90, which would suggest that Solana could continue until the next level of resistance. This would be at approximately $120, which is the first horizontal blue line.
Image Source – Binance.com
A confirmed move above that level would then suggest a move to the $150 mark. It is unlikely that Solana would continue on to the next level of resistance which is at approximately $200. There is likely to be some sideways, or even volatile movements after a significant breakout to the upside. In my opinion, the best case would be $150 in the immediate short-term, provided the breakout confirms and signals a go! As I am writing the price continues to hover at the $85/$86 mark and is awaiting some volume to either push it over or roll back down.
Definitely One To Watch
This is definitely one to keep a close eye on, as it could finally signal a shift and reward buyers who continued accumulation in uncertain times. There are no certainties, only probabilities and that is how it will always work. You have to work with what the market releases and not the other way around. Humility makes for the best traders, as humility can readjust and work with the market. Investors are on another level because investing often requires one to go against what the market is currently saying. This is done based on what the market is expected to say in the future.
Final Thoughts
In my case, I will continue accumulation even if this pattern fails, as I have long-term plans for my Solana. However, it would definitely make for a great trade if it were to confirm this breakout and edge higher. FTX is a great exchange to trade Solana and offers modest leverage for the experienced trader. Thanks for taking the time to check out this trading idea with me, hope to see you again soon!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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