#SOL

The chart shows a rising wedge pattern, which is typically a bearish reversal pattern that forms after an uptrend. In this case, the wedge appears to be part of a five-wave Elliott structure, potentially marking the end of a corrective phase.

Key Observations:

1. Rising Wedge: The wedge is marked between points 2 and 4, where the price is moving upwards within converging trendlines. This is often seen before a price drop.

2. Wave Count (Elliott Waves): The wave count (1 to 5) suggests a five-wave structure, which aligns with corrective or impulse moves. If this is part of a corrective pattern, the price may retrace downward after the 5th wave.

3. Support Zone: There’s a strong green support zone below (around 142.59), which price has touched multiple times. This level might act as a key support if the price breaks down from the wedge.

4. Volume: The volume seems to be picking up around the support region, indicating that traders are paying attention to this zone.

Analysis:

The rising wedge is a warning sign of potential bearish movement. If the price breaks below the wedge (below point 5), it could lead to a decline back to the support zone around 142.59 or even lower.

However, if the price breaks the resistance above (above 155.62), it could invalidate the bearish pattern and continue an uptrend.

Possible Scenarios:

Bearish: A breakdown below the wedge would target the support zone near 142-143.

Bullish: If the price sustains above 155.62, the next target might be the 163.60 resistance level shown on the chart.

#DYOR