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Peter Oleshchuk
Dec 23, 2021
by Peter Oleshchuk

SOL Technical Analysis: Powerful Growth Wave May Not be Forthcoming

SOL

Table of contents

  1. Technical Analysis of SOL in the Daily Timeframe
  2. The SOLBTC Price Is in Fierce Consolidation
The previous trading week in the SOL market, apparently, made investors hold on to their hearts. Sellers managed to break the global trend line of buyers for some time. This trend line has been firmly keeping the SOL price since December 2020. However, sellers failed with trading volumes. Starting on 8 November, the new fall wave in the Solana market looked rather weak and was not supported by volumes. The struggle for the $175-$185 range continues, and this means that a powerful growth wave may not be forthcoming.

SOL

Looking at the weekly timeframe, it seems that now buyers are accumulating positions for a new growth wave and are not yet ready for decisive action. If you look closely at the trading range from 22 September, you can see that the SOL price movement has moved to the local channel. Such channels mostly help to get through difficult liquidity zones when there is no strength to fight openly.

Now the SOL price is at the bottom of this channel and the first target for growth is $330. If buyers can take control of the $330 mark, then we will expect a new powerful growth wave. However, given the length of the SOL price in the consolidation channel - so far this is unlikely.

Technical Analysis of SOL in the Daily Timeframe

TradingView Chart

Analyzing the daily timeframe of the SOL price movement, you can better see the consolidation channel. Now we see that after the test of its lower trend line, buyers are trying to fix above the range of $175-$185. The negative scenario you need to be prepared for is a re-test of the $155 mark. If buyers confidently repel the attack of sellers near this mark, it will be a signal to buy SOL with the first target of $220. The final target remains unchanged at $330. Such a scenario is possible if the BTC price cannot keep above the $48,000 mark range. In this case, investors will not be ready to keep the SOL cryptocurrency, even given the low dominance of Bitcoin.

The SOLBTC Price Is in Fierce Consolidation

TradingView Chart

Though, if you look globally at the SOLBTC price chart, a catastrophic scenario for this cryptocurrency comes to mind. Note that the SOLBTC price is moving in a fairly narrow consolidation from September 2021. Of course, such a strong accumulation of position can give a powerful vector wave for the SOL market. But, the SOLBTC price has not actually corrected since the aggressive growth of December 2020. For buying this cryptocurrency now, you need to be ready to close it if the price falls below 0.0024. In this case, the potential for a fall of the SOLBTC price will be 60%.

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SOL Technical Analysis: Powerful Growth Wave May Not be Forthcoming
Peter Oleshchuk
Peter came to know about cryptocurrencies in 2017 and was instantly enamoured by their massive potential. As he gained more insights about the crypto market, he began writing about it. Peter's daily activity is analysis and forecasting, studying the price movements probabilities, and trying to understand the market inside. He is glad to witness such a phenomenon as cryptocurrency and decentralized finance, and to participate in it.

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