Analyst Urges Investors to Stay Patient as Solana Encounters Resistance in Pricing
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Similar to the rest of the market, Solana’s price faced a significant barrier, hindering its recovery as it approached the $180 threshold, ultimately triggering a downward trend. A cryptocurrency analyst has advised investors to stay calm and exercise patience during this phase.
Be Patient for Clearer Trends
In a post on TradingView, analyst SiDec discussed the current dynamics of Solana’s price, cautioning investors against rushing into purchases. He highlighted that the resistance level presents considerable risks for those eager to enter the market.
Further Insights
The $175-$183 range has historically acted as resistance for this altcoin, making it understandable that many investors are choosing these levels to exit following the recent market downturn. Additionally, smart capital is also targeting liquidity at these marks, increasing the chances of false breakouts for Solana.
When trading Solana, the analyst suggests that investors should aim to observe one of two scenarios: either a pullback that brings the price down to a support area rich in confluence, or a clear breakout above the $183 resistance, followed by a retest and confirmation.
The analyst has pinpointed two significant price zones for Solana: the first at $179.85, which has been tested recently, and the second at $180.52, which is yet to see action. A breakthrough above $180.52 would serve as a crucial confirmation for further bullish momentum.
Solana Completes Elliot Wave Pattern
An additional noteworthy point mentioned by the analyst is that Solana has completed a five-wave pattern. According to Elliot Wave Theory, this series only encompasses five waves; thus, its completion could indicate the end of the current bullish phase for Solana. Following this, a price correction may ensue, potentially followed by an opportunity for bullish continuation.
Further Insights
The emergence of the Fib Speed Fan pattern suggests further potential price corrections. The 0.618 level of this pattern, drawn from the all-time high of $295.83 to the swing low of $95.26, aligns seamlessly with the resistance zone, reinforcing the possibility of a potential retreat or halt in price action.
Considering these aspects, the analyst has proposed potential entry points for long and short trades. For those looking to buy, the $165.42-$164.25 range presents an opportunity. Conversely, short traders might find a favorable setup for a reversal entry at $200.
Image from Dall.E, Chart from TradingView.com
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