SOL/USDT : How to run the best strategy on SOL ?!
SOLUSDTSOLUSDHello everyone 😃
Before we start to discuss, I would be glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it !
Lately I published many charts about Solana and most of the was the LONG signals; But in the matter of time, All of them being invalidated because of fundamentals and the failure into macro technical...
Today I'm going to discuss more about the chart and dig deep into the fundamentals that we need to know about Solana before any positional or swing trades; So follow me till the end 😉
📌 Let's take a look at Solana from a top down perspective.
We are within a weekly demand zone, so I am expecting a relief bounce soon.
we can see that we put a number of deviations above September's range, with the last move up sweeping a previous high, before a move to the downside, which until recently had not resulted in a daily close below the low that preceded the sweep.
Price is now trading into weekly demand at September's mid-range.
The weekly is still very bullish in an uptrend with no break in market structure. Prior to the 9th of December, we had no daily candle closes below the low that preceded the up-move that took us out of September's range.
Now that we have closed below, I consider the daily market structure firmly broken.
📚 To further highlight the shift in market structure and identify potential price magnets, let's throw on some indicators.
- EMA 33/55 Cloud, Price is now trading below; This was previously support.
- 1D EMA200 (Currently around $136), The 1D EMA200 should act as support if price were to drop to these levels.
📍 Now we have our vision on the Technical and the basic chart, So let's head to our fundamentals and further information on technical perspective 👇🏼
📚 From a fundamental perspective :
I am still optimistic about the Solana ecosystem. There's lots of innovation and development happening in the space and it has ties to SBF and FTX, So I doubt it will fail.
However the biggest issue that has been highlighted to me though friends that are well versed in fundamental analysis and highly skilled developers, is it's Centralisation.
This is probably the reason why it achieves such fast transaction speeds. While this is a breath of fresh air when compared to Ethereum, it does impact security and stability of the network.
Solana going down often (or often enough) is not a good look.
I'm currently researching the ecosystem further to identify how the team plan on addressing this going forward.
The TL;DR version of my view on the fundamentals: Lots of activity, increasing popularity and users, don't think it will fail overall, but has some underlying issues that pose a major risk to the network.
With ETH 2.0 around the corner, the pressure is on to remain a sought after platform.
📚 From a technical perspective:
- The weekly chart is BULLISH.
- The daily chart is BEARISH, due to the shift in structure mentioned.
- However, we are trading with a WEEKLY DEMAND. So this is not the time to look for shorts.
- Given the technical and the fundamentals, I am happy with the amount of SOL I previously accumulated lower, but I don't have the macro conviction to add for now.
- I do think we see some major relief soon and will be looking to position long.
📊 Current Plan:
- Looking for longs within weekly demand. Want to see a range develop or a reversal pattern.
- Due to the bullish weekly but bearish daily structure, I will be playing Solana level to level.
- Not looking to open any swing longs or add to spot until we form a convincing HTF accumulation OR we reclaim bullish structure on the daily.
📌 I also want to stress that I'm not necessarily getting bearish at support (and weekly demand for that matter), quite the opposite.
But I have recognized the shift in macro structure for now.
The price action presented makes it ideal for trading level to level and looking for longs within this weekly demand zone.
But I need to see an accumulation or structure shift before adding spot.
📊 Now we know enough about our long-term plan; Let head to our short-term plan and possibilities with 4H and 2H chart... 👇🏼
- Long Scenarios, Jump into 4H's time-frame and discuss about two possible LONG opportunities.
- PO3 Scenario, Zoom into 2H's time-frame to see our development on the another side of visions.
- Long Scenarios, Jump into 4H's time-frame and discuss about two possible LONG opportunities.
As mentioned in the post above, despite closing my recent spot play, I am looking for longs. Two scenarios I am lining up:
- Form reversal pattern within the weekly demand + enter an aggressive long with SL below the lowest low. Want to see a higher low within the price action.
- Or, reclaim the last up candle that preceded the move down into weekly demand, sweeping prior lows.
- PO3 Scenario, Zoom into 2H's time-frame to see our development on the another side of visions.
Also there can be a Potential PO3.
Game plan revolves around that low...
That's why I mentioned to sweep the lows and form a reversal pattern into the weekly demand !
If we zoom into the another demand formed as daily Demand, We can see that there's a wick into the zone and it didn't sweep yet;
It can be a reason to hunt your SLs before any majority hold above the current higher order-block.
📑 So if you're a safe player and watching for a great R/R to trade; Then you need to wait for the lows to sweep and get the bullish attention into the daily/weekly Demand !
Hope you enjoyed the content I created, You can support us with your likes and comments !
Attention: this isn't financial advice we are just trying to help people on their own vision.
Have a good day!
Helical_Trades
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