Buy for investment, but not buy for trading
My bias for Solana is extremely bullish and the current price is almost undervalued based on the fundamentals. Therefore, I bought some more Solana yesterday for investment, not trade.
If you are interested in investing in Solana for the duration of this Bitcoin cycle, it is a good time to buy Solana. But if you are interested in leverage trading, I feel you need to wait a bit longer for the right set up to come up. The below is my reasoning for not opening a trade:
The price reached about $265 in late Nov 2024 and retraced to Fib 0.786 level and bounced up. However, there was a big sell order sitting above $220 which is Fib 0.382/the previous week high. I warned in my previous analysis there would be a possibility of another minor correction and that's exactly what happened.
Monday 13th Jan, along with Bitcoin, Solana showed a strong recovery off the descending former resistance and now support line that had been developing over 10 months. The price is now above the previous week's low, the previous month low and also above Fib 0.782.
The daily stochastic reached the oversold territory and now is rolling back up. The 4H MACD is about to enter the bull territory. There are definitely strong confluences that make me want to open a long position. However, there are a few issues that cannot be ignored for a swing trade set up.
The most important and number one rule for me to open a trade is that MACD for a higher time frame needs to be sitting in the zone of my bias. In short, if I want to go long in 4H time frame, the daily MACD needs to be in the bull zone (above 0). Currently MACD is still below 0 and MACD lines are pointing downwards. Therefore, the bear is still in control. I cannot trade, Another issue is the 4H stochastics has already reached the overbought territory. That means the bull is working but has also exhausted its strength for now.
I think Solana will start to move up strongly soon, but the price correction since Nov was quite deep. Therefore, it will take a while for Solana to start a strong rally.
If you are interested in investing in Solana for the duration of this Bitcoin cycle, it is a good time to buy Solana. But if you are interested in leverage trading, I feel you need to wait a bit longer for the right set up to come up. The below is my reasoning for not opening a trade:
The price reached about $265 in late Nov 2024 and retraced to Fib 0.786 level and bounced up. However, there was a big sell order sitting above $220 which is Fib 0.382/the previous week high. I warned in my previous analysis there would be a possibility of another minor correction and that's exactly what happened.
Monday 13th Jan, along with Bitcoin, Solana showed a strong recovery off the descending former resistance and now support line that had been developing over 10 months. The price is now above the previous week's low, the previous month low and also above Fib 0.782.
The daily stochastic reached the oversold territory and now is rolling back up. The 4H MACD is about to enter the bull territory. There are definitely strong confluences that make me want to open a long position. However, there are a few issues that cannot be ignored for a swing trade set up.
The most important and number one rule for me to open a trade is that MACD for a higher time frame needs to be sitting in the zone of my bias. In short, if I want to go long in 4H time frame, the daily MACD needs to be in the bull zone (above 0). Currently MACD is still below 0 and MACD lines are pointing downwards. Therefore, the bear is still in control. I cannot trade, Another issue is the 4H stochastics has already reached the overbought territory. That means the bull is working but has also exhausted its strength for now.
I think Solana will start to move up strongly soon, but the price correction since Nov was quite deep. Therefore, it will take a while for Solana to start a strong rally.
Trade active
Momentum is so strong for upside. It is a time to buy. If you want to trade with tight stop/loss, it is a different story. But it is the time to buy. 
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