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Market Direction

SOL slows down; now, the consolidation begins

Updated: Jul 25, 2024
Published: Dec 13, 2023
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SOL is now out of its main uptrend line. It has recovered when it lost the uptrend before, but it does look relatively weaker here, despite volumes still being okay.

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  • Currently, there is the local support of $65 beneath price, along with the more major horizontal support at $61. If these levels are lost, $56 and then $52 will be the targets. Both of these would be good DCA'ing areas.
  • Still, the RSI on the 3D and the Weekly remains in overbought territory, which suggests that we’re likely to see more downside or at least a consolidation for a month or so, likely sub $60. Price could potentially consolidate between $52 and $60, resetting these larger timeframes.
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Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.
The Open Interest has reset substantially from a week ago from $1.1b to $800m. A 25% or so decrease.

This was absolutely needed for SOL.

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Cryptonary's take

 Short-term price action is likely to be dominated by today's events, led by however hawkish Chair Powell is. 

However, in the next few months, we see SOL likely consolidating for a while.

This consolidation may see price go to $48, and we may become range bound between there and $60. 

But it's our feeling that we see more pullbacks and a consolidation of those ranges. After all, it’s a major cap coin that was close to quadrupling in just two months - from $21 in mid-October to the high of $77 last week. 

We remain patient with SOL; we believe there will be good long-term entries in the coming months in the $50s.



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