Greetings, Solana is still holding strong and looking strong.
We assume the move up from the 3rd of August was an impulse displayed as green 5 wave move of which we finished Wave 1 and potentially Wave 2 as a red ABC.
We have two scenarios moving forward as the price action on the lower timeframes doesn't give us enough clarity to say which one is preferred. In either case we want to hold the Wave 2 support area which goes down to the 0.886 FIB At 161.99 USD.
Case 1:
Green Wave 2 is already finished in the red ABC and we are looking for an impulsive move to the upside in the 3rd Wave which should take us above 230 USD. Be aware that this 3rd Wave should happen quiet fast and aggressively.
Case 2:
The move down in the red ABC was only the Wave A of an extended correction.
The Wave B resistance area is between the 0.382 FIB at 188.74 USD and the 0.886 FIB at 205.96 USD. Be aware that we touched the 0.382 FIB which means the B wave could be in but we think the B wave isn't in yet because it would be a very shallow B which doesn't fit Solana's recent strong performance. We think a higher B wave is more likely.
As said we can't distinguish well between the two scenarios due missing price action on the lower timeframe. We hope to get more clarity soon. We also want to communicate a back up scenario in case we break the support area in which we would assume that we get a reset of the white Wave 2 in expanding flat meaning the green Wave 1 was an overshooting B Wave.
Thanks for reading.
NO FINANCIAL ADVICE.
We assume the move up from the 3rd of August was an impulse displayed as green 5 wave move of which we finished Wave 1 and potentially Wave 2 as a red ABC.
We have two scenarios moving forward as the price action on the lower timeframes doesn't give us enough clarity to say which one is preferred. In either case we want to hold the Wave 2 support area which goes down to the 0.886 FIB At 161.99 USD.
Case 1:
Green Wave 2 is already finished in the red ABC and we are looking for an impulsive move to the upside in the 3rd Wave which should take us above 230 USD. Be aware that this 3rd Wave should happen quiet fast and aggressively.
Case 2:
The move down in the red ABC was only the Wave A of an extended correction.
The Wave B resistance area is between the 0.382 FIB at 188.74 USD and the 0.886 FIB at 205.96 USD. Be aware that we touched the 0.382 FIB which means the B wave could be in but we think the B wave isn't in yet because it would be a very shallow B which doesn't fit Solana's recent strong performance. We think a higher B wave is more likely.
As said we can't distinguish well between the two scenarios due missing price action on the lower timeframe. We hope to get more clarity soon. We also want to communicate a back up scenario in case we break the support area in which we would assume that we get a reset of the white Wave 2 in expanding flat meaning the green Wave 1 was an overshooting B Wave.
Thanks for reading.
NO FINANCIAL ADVICE.
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.