Market Direction

SOL slows down; now, the consolidation begins

Updated: Jul 25, 2024

Published: Dec 13, 2023

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.

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.

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.

aligncenter size-full wp-image-290907

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.