Prices of Solana (SOL) have begun to strengthen increasingly and if the broader market remains stable, it is possible that SOL could break out in the short term.
The potential for SOL to increase in the short term could be significant as the transfer itself takes place quickly. The 2022 volume format between $ 53 and $ 90 is extremely thin, indicating that any daily close above $ 53 would easily move toward the next high node in the $ 90 range.
In addition, the 50% Fibonacci update is at an all-time high on July 26, 2021 weekly and the 2022 Volume Point of Control is also in the $ 90 price range.
Bulls traders should expect some resistance for SOL prices near Kijun-Sen and 61.8% Fibonacci retracement near the $ 70 price range. However, given the thin volume profile, this resistance may be short-lived.
Rumors suggest that sellers may have difficulty fixing SOL below $ 50
Depression is still a concern but is likely to be limited in size and scope. The triangular pattern on the daily chart shows that bulls have made another attempt to push SOL up and out, but have so far refused to spend significant time above the upper direction line.
If a bearish breakout below the triangle occurs, bulls will understandably panic, but bears should not be too confident. Although the 2022 volume format is thin below $ 39 prices, the 2021 indicator also shows considerable participation between $ 41 and $ 48.
Another rapid sale towards $ 39 is likely to occur if SOL closes its candlestick daily at or below $ 49.
Time cycles indicate that a change of direction may begin soon
Solana’s pricing measures are in place for a significant bullish jump from a time cycle perspective. In Gann Analysis, one of the most powerful cycles is the 180-day cycle (almost 198 days). Gann indicated that any device heading in one direction in 180 days is very likely to produce a powerful correction movement or a major change of direction.
May 23, 2022 is the 196th day from its historic high on November 8, 2021.
To compliment Gann’s 180-day cycle, there’s an event within the Ichimoku Kinko Hyo system: Kumo Twist. Kumo Twist is the season when Senkou Span A goes over Senkou Span B. In addition, you can see how the cloud changes color. Kumo Twists have a high probability of identifying when a new low / high swing may occur.
Macroeconomic data will continue to weigh in on cryptocurrencies
Solana and the broader cryptocurrency market remain under the control of the stock market. Although the stock market recovered moderately at the May 23 meeting, all four major indices are at or near the bear market.
For example, the RUSSELL 200 (IWM) fell -27%, the NASDAQ (NDX) by -28% and the S&P 500 (SPY) hit the bear market area on Friday, May 20, but it crawled out of it on Monday, May. 23 ,. However, the index remains close to market conditions at -17%. Only DOW has remained outside the bear market area.
Fluctuations are expected to be unusually high this week as well. New housing sales data will be released on 24 May, durable goods on 25 May, economic growth rate on 26 May and expenditure and personal income (MoM) on 27 May.
All bearish or bullish stock market price movements can be expected to be reflected in the cryptocurrency market.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should conduct your own research when making a decision.
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