$SOL
The Solana chart is still under pressure right now, and we're testing the 50% retracement level at $62.43. This level might provide a temporary corrective bounce within the downward wave C, but I'm not convinced yet that the actual bottom has formed.
Looking at the larger time frames, the negative pressure continues. The first resistance zone to watch is between $73.18 and $89.40. To change this bearish outlook, we need to see a five-wave rally breaking above the $89.40 level as an initial signal of buyers returning, which I'm not favoring at this moment.
On the flip side, if we break last week's bottom levels, the next support levels will be at $48.78, then $43.22, down to the golden level around $40, and historically, the drop could extend towards $32.
On the smaller four-hour time frame, the price is moving exactly as I predicted in the corrective wave four scenario. After touching support at $62, we got a temporary bounce followed by a micro pullback towards support at $61.74 to $63. Currently, we are heading towards a minor resistance area between $68 and $72, and the ideal target for the extension of wave C is $70.78, which aligns with the 50% retracement at $70.60, where I expect strong resistance.
The bottom line is that the market is experiencing a temporary bounce resembling a dead cat bounce, and the overall trend remains bearish as long as we stay below the mentioned resistance areas.
The Solana chart is still under pressure right now, and we're testing the 50% retracement level at $62.43. This level might provide a temporary corrective bounce within the downward wave C, but I'm not convinced yet that the actual bottom has formed.
Looking at the larger time frames, the negative pressure continues. The first resistance zone to watch is between $73.18 and $89.40. To change this bearish outlook, we need to see a five-wave rally breaking above the $89.40 level as an initial signal of buyers returning, which I'm not favoring at this moment.
On the flip side, if we break last week's bottom levels, the next support levels will be at $48.78, then $43.22, down to the golden level around $40, and historically, the drop could extend towards $32.
On the smaller four-hour time frame, the price is moving exactly as I predicted in the corrective wave four scenario. After touching support at $62, we got a temporary bounce followed by a micro pullback towards support at $61.74 to $63. Currently, we are heading towards a minor resistance area between $68 and $72, and the ideal target for the extension of wave C is $70.78, which aligns with the 50% retracement at $70.60, where I expect strong resistance.
The bottom line is that the market is experiencing a temporary bounce resembling a dead cat bounce, and the overall trend remains bearish as long as we stay below the mentioned resistance areas.