#SOL is providing some of the clearest evidence, IMO, that the current move higher is corrective rather than the start of a new bullish impulse.
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The key is overlap.
The internal structure does not support a clean 5-wave impulsive advance, so I currently favour a 3-wave corrective interpretation.
The strength of this latest move doesn't change that, as C waves can be extremely powerful and impulsive in appearance.
RSI is also now stretched into overbought territory as price approaches the upper Fibonacci targets.
If this interpretation is correct, once the correction completes I would expect another impulsive leg lower, potentially retracing the entire corrective advance.
Structure over excitement.
$SOL
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The key is overlap.
The internal structure does not support a clean 5-wave impulsive advance, so I currently favour a 3-wave corrective interpretation.
The strength of this latest move doesn't change that, as C waves can be extremely powerful and impulsive in appearance.
RSI is also now stretched into overbought territory as price approaches the upper Fibonacci targets.
If this interpretation is correct, once the correction completes I would expect another impulsive leg lower, potentially retracing the entire corrective advance.
Structure over excitement.
$SOL
