What might we expect from Sol in the coming weeks? I have a decent position in SOL and wanted to assess again where we might be headed.
Key things I want to note:
1. Macro Rising wedge pattern. Attempt to break the top side of the wedge occurred with the first push through 200 but was rejected. We are currently in between trends. Low side is 145, Low side break could see a return to 35 if market dives
2. Daily OBV trend is currently touching, this trend has held for the entire bull run of SOL, a break of this line would for me be a big Break in confidence
3. Many similarities noted with Mar '21 leg up
4. NB, as above price trend support is 145 range, which is confluent with previous value area, level to watch if we pull back. But hoping we can hold above previous ATH retest
Details:
On the negative side of things momentum with SOL has not unexpectedly dropped after such an big run. This produces the rising wedge pattern and also prints the bearish divergence on both OBV and MACD indicators.
Importantly, OBV and price trend are intact, and we saw similar divergences before the Mar '21 leg up. RSI has repeated a pattern of double bottom, followed by a significant hidden bullish divergence, before rocketing up. Can we expect a similar move from SOL again in the coming weeks? My Bias is bullish here, and want to read the Hidden bullish divergences over the more obvious bearish tops on both OBV and MACD, but we can't ignore the massive extension SOL has seen in the recent months and the precarious position the OBV trend is in, if I see this OBV trend break I will halve my risk and watch price action from there.
Watching for RSI to print a high low and trends to remain intact, while regaining the 220 level
Upside target is 500 range, downside targets are 145 and if price and OBV trends break down possible revisit to 35 (I hope not!)
SOL has strong fundamentals, and I hope this can hold its momentum. Anything is possible though, ETH has seen similar deep dives
Key things I want to note:
1. Macro Rising wedge pattern. Attempt to break the top side of the wedge occurred with the first push through 200 but was rejected. We are currently in between trends. Low side is 145, Low side break could see a return to 35 if market dives
2. Daily OBV trend is currently touching, this trend has held for the entire bull run of SOL, a break of this line would for me be a big Break in confidence
3. Many similarities noted with Mar '21 leg up
4. NB, as above price trend support is 145 range, which is confluent with previous value area, level to watch if we pull back. But hoping we can hold above previous ATH retest
Details:
On the negative side of things momentum with SOL has not unexpectedly dropped after such an big run. This produces the rising wedge pattern and also prints the bearish divergence on both OBV and MACD indicators.
Importantly, OBV and price trend are intact, and we saw similar divergences before the Mar '21 leg up. RSI has repeated a pattern of double bottom, followed by a significant hidden bullish divergence, before rocketing up. Can we expect a similar move from SOL again in the coming weeks? My Bias is bullish here, and want to read the Hidden bullish divergences over the more obvious bearish tops on both OBV and MACD, but we can't ignore the massive extension SOL has seen in the recent months and the precarious position the OBV trend is in, if I see this OBV trend break I will halve my risk and watch price action from there.
Watching for RSI to print a high low and trends to remain intact, while regaining the 220 level
Upside target is 500 range, downside targets are 145 and if price and OBV trends break down possible revisit to 35 (I hope not!)
SOL has strong fundamentals, and I hope this can hold its momentum. Anything is possible though, ETH has seen similar deep dives
