Possible scenarios in SOL after a 65% jump in 7 daysIf you find the analysis useful, please like and share our ideas with the community. Any feedback and suggestions would help in further improving the analysis!
Quick glance: SOL is currently facing some major profit booking, days after reaching a new ATH. We recently saw a huge bump in volumes. However, since then we saw a slight consolidation followed by a heavy profit booking.
Market in the last 24hrs
The past 24 hours saw the selloff reducing a bit, as the body of the candle is small. It indicates a bit of indecisiveness.
Today’s Trend analysis
If we take a look at the Money Flow Index, we can witness that SOL is in the highly overbought territory. It is not exactly sustainable and we are likely to see some profit booking.
This rally was impending in SOLANA for a long time as it was in a major consolidation for quite some time. SOL went up more than 65% for the week.
A prudent decision at this point would be to wait for a pullback and a consolidation. If after the consolidation, SOL starts rising on the daily, we might look at another buying opportunity. In case it falls again after the consolidation, we would know that SOL hasn’t found support yet and a deeper correction might be pending.
Price volatility remained high at approximately 7.26%, with the day's range between $70.33 — $75.44.
Price at the time of publishing: $72.80
SOL’s market cap: $21.03 Billion
Out of 11 Oscillator indicators, 8 are neutral, 2 are bearish and 1 is bullish.
Out of 15 Moving average indicators, 1 is 'NEUTRAL', 1 is bearish and 13 are bullish.
Indicator summary is giving a ‘ BUY ’ signal on SOL.
Volumes have decreased over the past 24 hours.
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The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 24-hour candles.
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
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-Mudrex
