NOTE: In a recently published post I warned about the "Trap for Solana Buyers", but it feels like that post needs some more explanation so here's an improved version.

Let's analyze the situation first!

✅ Bitcoin ATH & Halving: $BTC just topped before halving and since then it's consolidating, hence the rest of the market follows it as well for some time.

✅ Vertical Growth: $SOL grew vertically in the past few months with almost no consolidation.

What does that indicate? A correction, right?

Look at this picture:

✅ Weekly vs Daily View: A ton of people use 'Daily Timeframe' for their go-to analysis method. But, sometimes it could be a problem when lower timeframe doesn't align with the higher timeframe. That's the case here.


Let's draw some structures(with a Daily timeframe trading approach):

Daily seems Bullish, buyer would be expecting something like this:

But,

THIS IS WHERE EVERYONE IS BEING TRAPPED!

What's the Weekly View?

Let's See:

3 Key reasons to expect a fail at Red Zone:

✅ Overall market is red until we really see some momentum regarding #AltSeaason .

✅ Solana could 'Fake A Break' upwards and continue bearish move because $SOL recently broke the bullish trend line & it's retesting in bearish mode.

✅ Red zone has been already tested twice, and sellers are continuously pushing the price down.

✅ Recent push(after 2nd retest) was very weak and small, now the price is back at the same level for the 3rd time, "Buyers are losing strength".

Here's a visual presentation on Daily Timeframe:

Conclusion:

Using this approach, price is still expected to drop. Which could be either of the 3 ways:

1- Key level(Red zone) break, which didn't happen and some pending buy orders got absorbed here.

2- Direct rejection from the broken trend line(bearish retest) level, which didn't happen.

3- "Fake A Break" around/at the trend line retest level, show FAKE bullish momentum(to add more confusion) and go down when everything looks bullish, hence trapping all the buyers.

NOTE: That's all from the above perspective, if none of this happens within/around next 72hrs, then we're wrong and we should learn from the situation.

Following now could help you understand the reality in future as well...!