Solana, is it time for a breakup?SOL/USDT Binance Weekly Chart
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Orange = EMA 21
Green = SMA 50
Red Lines = Predicted resistance and or support areas.
Purple Lines = My limit buy orders.
Greetings fellow crypto enthusiasts and fellow traders,
NFTS have been raging hot with such euphoric buying and while there will likely be a future for NFTS, I believe the immediate uptrend on Solana is over. While there is a current consolidation in the price action, it does not mean SOL is out of the woods yet.
With the Stock market looking to pullback next year and the strong corelation between crypto and the SPY, there is a greater chance of a pullback to retest lower levels, perhaps even as low as $80.00.
However, I don't think this move will happen unless there is a pullback in BTC and the SPY, along with the price action piercing the EMA 21 again.
Currently the price action remains undecided, does it go towards testing $200? Or does it retest the Weekly EMA 21? Whichever the case, If I were trading this, I would probably DCA and stay away from position sizes that are too large.
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Price Action Analysis:
-The uptrend from June to Nov, appeared to tighten and trade in a rising wedge.
-The Drop so far has resembled a potential Broadening Ascending Wedge.
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Current Trade ideas:
Trade idea#1 - Buy as close to the Weekly EMA 21 as possibile, Take partial profits at $180 or higher.
Trade idea#2 - DCA, no one knows where the bottom will be after the euphoric phase has run out. However, this NFT network and NFTS in general are too large to ignore, but do consider position size and risk when entering.
Good Luck out there,
May your portfolio reach Luna and beyond
