As with other cryptos in the market, Solana’s recovery recently hit a snag as it encountered price resistance, halting the coin’s recovery just shy of the $180 mark, and causing a subsequent price dip. Amidst this, a well-known crypto analyst advises investors to remain calm and patient during this period.
In a recent post on TradingView, cryptocurrency analyst SiDec discussed the current situation of Solana, cautioning investors against rushing to buy into the coin. SiDec highlighted that at the current level, where Solana has met resistance, there’s a significant risk for those eager to enter the market.
SiDec points out that the $175-$183 range has historically been resistance zones for Solana, hence it’s no surprise that investors are choosing to exit at these levels post the recent market downturn. Furthermore, savvy investors are also hunting for liquidity at these levels, and Solana is susceptible to false breakouts due to this.
When it comes to trading Solana, SiDec advises investors to wait for one of two scenarios to unfold. Either there’s a dip in Solana’s price and it drops towards a “confluence-rich support zone,” or wait for a clean breakout above the $183 resistance, followed by a retest and confirmation.
SiDec also pointed out that Solana has completed a 5-wave sequence, based on the Elliot Wave Theory. This could indicate the end of the current bull rally for Solana, followed by a price correction and a subsequent bullish continuation after confirmation.
The formation of the Fib Speed Fan pattern also suggests the possibility of a further price correction. As SiDec wrote, “The 0.618 Fib Speed Fan — drawn from the all-time high at $295.83 to the swing low at $95.26 — aligns perfectly with this resistance zone, adding more weight to the idea of a potential rejection or pause.”
Considering these developments, SiDec suggested possible entry points for both long and short positions. For bullish investors, the $165.42-$164.25 level could present an opportunity, while for bearish traders, a reversal play and entry at $200 seems the best setup.
