Solana (SOL) Technical Analysis: Intriguing Consolidation and the Mark of $80
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A Phenomenal Result Which Needs Correction
The weekly timeframe shows that trading volumes began to grow significantly from mid-August. At this time, buyers took control of the $80 mark. It is this mark that we will consider a global critical point in the event of a new collapse in the cryptocurrency market. And given that buyers can not force the price to fall behind the mark of $40,700, such a scenario is likely. The range of $180-$190 became a liquidity sales zone, where the local correction of the SOL market began. Buyers' attempts to take control of this range ended in high volumes and a pin up on the weekly candle. It was after this that the local correction in the SOL market began, which has all the chances to grow into a global one.
Technical Analysis of SOL in the Daily Timeframe
Analyzing the price movement on the daily timeframe, we can see that the critical volumes in the SOL market took place from 7 to 9 September. It was at that moment that sellers proved themselves and took the local initiative in the market. Since then, the local correction of the Solana price has started and the trading volumes have only decreased daily.
Now the price is in a dangerous position, from which it can shoot 30% both up and down. On the one hand, there is a trend line of buyers, which keeps the price from July 2021. Loss of control by buyers over this trend line will trigger a large number of stop orders, which will lead to a powerful fall wave with a target of $80-$90. But, so far we see that sellers are not trying to put pressure on the price. In addition, after 21 September, they did not update the local lows anymore. And the local trend line, which keeps the trend of sellers also is under attack. And above it, the first liquidity zone is in the range of $180-$190.
The SOLBTC Price Only Adds Intrigue
Moving in an equilateral triangular consolidation, the SOLBTC price does not dispel doubts, but only suggests to expect. Looking at the nature of the fall, the probability of a price rebound is quite high. However, even the breakdown of consolidation may not be accompanied by a strong fall wave but a new sluggish price decline to the liquidity range.
Therefore, for investors who do not want to lose the chance to enter the market, you can cut your investment in two. Apply one part now and leave the other for the probable SOL price to fall by 20-30% of the current price.