Solana (SOL) is carving out a fascinating pattern. The digital asset, known for its high-speed and low-cost transactions, is currently in a consolidation phase, following a significant upward surge and a subsequent three-wave pullback, suggests one of the top crypto analysts on YouTube.
This pattern, often seen in the world of technical analysis, is known as an Elliott wave pattern.
In July, Solana (SOL) experienced a series of price fluctuations. The cryptocurrency started the month at a price of $18.857. It saw a dip to its lowest price of the month on the 1st of July, reaching $17.91. However, SOL managed to recover and climb back up in the following days.
By the 6th of July, SOL had reached a price of $19.601, and it continued to rise, reaching its all-time high (ATH) for the month on the 14th of July at $32.235. This marked a significant increase from its lowest point earlier in the month. As of the 15th of July, the price of SOL is $27.6, indicating a positive trend in its price movements.
The current consolidation phase is potentially forming a triangle pattern, a common occurrence in the fourth wave of Elliott wave patterns. This suggests that Solana could be gearing up for another significant price movement.
Fibonacci retracement levels are playing a pivotal role in Solana’s price action. The 50% level is acting as a key support, with the price holding above it so far. However, a drop below this level could challenge the bullish perspective. But fear not, as long as the price remains above $22.40, the bullish outlook remains intact.
Looking ahead, the third wave of the Elliott wave pattern could potentially reach a minimum target of $43.40, based on a 1.618 extension of the first wave. This would represent a significant gain for holders of Solana. However, there’s also the possibility that the current fifth wave could instead form a larger wave one within the third wave. This would be a bullish scenario as it would provide another opportunity to buy the dip in an uptrend.
In conclusion, Solana is at a critical juncture. If the price forms a higher low and another lower high, it could be indicative of a potential breakout to the upside following the completion of the triangle pattern. As always, in the world of cryptocurrencies, it’s essential to stay informed and keep an eye on these key technical levels.
COMP’s Trend Remain Bullish
The Compound (COMP) cryptocurrency has seen some interesting price movements recently. As per the data from CoinMarketCap, the price of COMP has been fluctuating with a mix of upward and downward trends.
Starting the month of July at a price of $56.00, COMP experienced a dip to its lowest price of the month at $51.39 on July 1st. However, the cryptocurrency quickly rebounded and reached its all-time high (ATH) for the month at $77.77 on July 15th. This represents a significant increase from the lowest point earlier in the month.
Observations indicate a potential wave-like correction on the horizon, a common occurrence in the ebb and flow of market trends. The Elliott Wave Theory, a trusted tool in the technical analyst’s arsenal, suggests that we are witnessing the completion of the fifth wave.
A notable divergence between the third and fifth waves has been identified, characterized by a gradual decrease in the distance between the peaks and previous bottoms. This divergence could be a precursor to a correction before the price ascends to new heights.
The support levels at $63 and $52 are expected to hold strong, creating a safety net against a potential price drop. It is unlikely that the price will breach the $52 mark, providing a degree of assurance to investors.
Despite the anticipated correction, the overall trend of COMP remains bullish. This analysis serves as a reminder that even in a bullish market, corrections are a natural part of the cycle. As always, investors are advised to conduct their own research and consider multiple factors before making investment decisions. Remember, the world of cryptocurrency is as exciting as it is unpredictable. Stay informed, stay vigilant, and happy trading!
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