SOLANA: A Cautiously Optimistic Outlook, $720 top?Fellow traders, earlier this week, I provided my long-term outlook on BTC and the broader crypto market. Today, I’ll share my specific outlook and thoughts on Solana (SOL).
Fundamentals
Overall, my take on Solana is bullish but with caution. Of all the high-volume alt-coins, Solana exhibits the most bullish behavior when bullishness is expected. For example, when BTC goes up 20%, SOL typically goes up 40%.
I believe this bullish behavior can continue due to the meme coins that fuel demand for SOL. Solana has some of the lowest fees, ample integrations for meme coin creation, and a high trading volume to maintain its position. However, if BTC falls, SOL will likely crash harder, along with all the meme coins that depend on it.
Technicals: Case for Long
High probability reversion zones around $164, extending up to $185.
A higher high was observed on July 29th.
Price is moving within a rough channel.
Support at the channel bottoms with high-volume buying interest.
3-hour and higher time frames remain in a bullish trend.
High-probability bearish reversion zones are complete, and we are in a high-value zone.
The low from July 5th was not the recent lowest low.
Increasing volume over the past month so that it could be accumulation.
Case for Continuation of Short Trend
Based on the trend, we are not at the bottom yet. 2-hour and lower time frames are still bearish, with no retest or attempt to change the trend. The trend could continue, bringing the price even lower.
All coins, including BTC, are trending lower.
Equity markets are also falling, though this trend could reverse this week.
Given these conditions 🧐, I have a cautiously optimistic, bullish outlook for Solana. I expect a rebound once the bottom is reached and a revisit to the $170 area.
Lastly, if BTC is to go to $120k, I expect Solana to reach $720. Here is my target, and this is based on my mathematical system 😉
This is why Solana is one of my go-to coins for a long trade.
