๐จ SOLUSDT 1D Analysis: Is Solana Headed for a Major Correction?
๐ Trading Below MA200 โ The Crucial Turning Point
In the world of technical analysis, crossing above or below the 200-day Moving Average (MA200) can be a game-changer. Solana (SOLUSDT) has recently slipped below this key level, and hereโs why it might be a doom signal:
1๏ธโฃ Major Bullish Wave Precedes the Fall
Solanaโs meteoric rise over the past year may have set the stage for a significant downturn. When the market rallies for such an extended period, it naturally seeks balance through corrections. A long growth often triggers an equally long correctionโstrong growth leads to a strong decline.
2๏ธโฃ High Price = High Risk
Solana is currently trading at relatively high levels. โ Losing major support at these levels creates a potential for a massive crash. If the price were lower, the downside risk would be limited, but here, thereโs plenty of room for the price to drop further.
3๏ธโฃ Failed Breakout Above MA200
This is the most critical factor:
๐ (3a) Moving above MA200 only to fall back below creates a failed signal, strengthening the bearish momentum.
๐ก (3b) The failure to see a bullish continuation after breaking this crucial level indicates buyer exhaustion. Even above MA200, there were no major purchases, suggesting that investors arenโt willing to pay a premium for Solana right now.
Lower Highs, Lower Lows โ Bearish Trend in Motion
Since March 2024, Solana has been posting lower highs and lower lows, signaling a continuation of the bearish trend. This isnโt just about SolanaโBitcoin, Ethereum, Binance Coin and other crypto giants are in a similar boat. Weโve enjoyed a long bullish phase, and now itโs time for the inevitable correction before the next major rise.
Whatโs Next?
After this crash, we can expect a long consolidation/accumulation phase. Only after months of this phase will Solana and the rest of the market be primed for the next bullish wave.
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