The Wyckoff Method has established itself as an invaluable tool to anticipate significant changes in the prices of financial assets. Specifically, in the case of #solana, we have identified an accumulation process that began in May 2022. This has given us the opportunity to take advantage of each of the stages of this cycle. Currently, we are immersed in phase D of accumulation, an encouraging sign that suggests the imminence of an upward trend.
Last December, we were able to get ahead of the asset's rally just as it reached the "spring" level close to $9. Since then, we have noticed a notable increase in the asset's volatility. Despite news that initially seemed discouraging, such as the possible sale of $3.2 billion in Solana tokens by Alameda Research, we were confident that institutions would not allow a correction below $12.
We understand that many of you are currently immersed in the task of interpreting market signals. For this reason, we want to share our analysis with you.
Absorption signals: The first thing we must take into account are the absorption signals, which we can identify thanks to the wicks generated during the corrections. These shocks are indicators that institutions are taking advantage of the corrections to increase their position. Typically, these purchases are made at Fibonacci retracement levels between 0.23 and 0.38.
Absorption Stage C-D Wyckoff Accumulation Please note that spring took 3 months to complete, from October 2022 to January 2023.
The highlight is the movement that was generated during the absorption on June 5, taking us from $13 to $33. This is a clear sign that the supply of the cryptocurrency is currently in short supply. Within the accumulation theory this movement is known as SOS Signals of Strength.
Next Move: After reaching 33 dollars, a correction was generated at the 0.38 fibonacci level, an LPS that will take us back to 33 usd.
Long 1er Target 33 usd My recommendation is to wait for the asset to reach approximately $20.3. At this point the shoulder-head-shoulder pattern will be confirmed, and in addition, a rebound is expected at the dynamic resistance marked by the 50-period weekly moving average. Even though we are already at the weekly EMA20 currently, it is prudent to wait a little longer. This is because the volume profile indicates that most of the buyers are in the MA50 area.
Volume Profile.
If you have any questions or concerns, I will be attentive in the comments box. Don't forget to subscribe, you will find me as @victorCamargo Crypto. Thanks for your attention!
