Solana (SOLUSD) Potential Bullish Continuation
SOLUSD
Potential Bullish Continuation Following Falling Wedge Formation
A substantial falling wedge pattern has emerged on the chart, a pattern typically associated with bullish continuation. Price movements have converged within the wedge's upper and lower trendlines, suggesting a potential accumulation of buying pressure, possibly indicating the end of the correction.
The recent bounce from the EMA200, in alignment with the 0.382 Fibonacci retracement level, adds further support to the potential bullish continuation scenario. Currently, the price is moving between the EMA50 and EMA200, indicating potential consolidation before a breakout.
Key Levels:
Support:
EMA200 (Green line) - A breach below this level may invalidate the bullish pattern.
0.382 Fibonacci retracement level (approximately $102.37) - A break below could signal further downward potential within the Support levels area.
Resistance:
Upper trendline of the falling wedge (blue line) - A breakout above this line could validate the bullish reversal, signaling potential upward movement toward the wedge's apex within the resistance levels area.
Trading Bias:
Bullish with Caution: While technical indicators and the pattern suggest a potential upside, confirmation is crucial before initiating a trade.
Trading Strategy:
Consider waiting for a breakout above the upper trendline of the falling wedge to confirm the bullish continuation before entering a long position. Alternatively, a conservative approach involves waiting for the price to close and consolidate above the EMA50 to mitigate the risk of a false breakout.
Happy New Year from Manolis
Potential Bullish Continuation Following Falling Wedge Formation
A substantial falling wedge pattern has emerged on the chart, a pattern typically associated with bullish continuation. Price movements have converged within the wedge's upper and lower trendlines, suggesting a potential accumulation of buying pressure, possibly indicating the end of the correction.
The recent bounce from the EMA200, in alignment with the 0.382 Fibonacci retracement level, adds further support to the potential bullish continuation scenario. Currently, the price is moving between the EMA50 and EMA200, indicating potential consolidation before a breakout.
Key Levels:
Support:
EMA200 (Green line) - A breach below this level may invalidate the bullish pattern.
0.382 Fibonacci retracement level (approximately $102.37) - A break below could signal further downward potential within the Support levels area.
Resistance:
Upper trendline of the falling wedge (blue line) - A breakout above this line could validate the bullish reversal, signaling potential upward movement toward the wedge's apex within the resistance levels area.
Trading Bias:
Bullish with Caution: While technical indicators and the pattern suggest a potential upside, confirmation is crucial before initiating a trade.
Trading Strategy:
Consider waiting for a breakout above the upper trendline of the falling wedge to confirm the bullish continuation before entering a long position. Alternatively, a conservative approach involves waiting for the price to close and consolidate above the EMA50 to mitigate the risk of a false breakout.
Happy New Year from Manolis
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.