Solana (SOL): Correcting Before Moving Higher Again

4th Waves Are Often Complex

In my previous update, I showed “(black) major wave-2 lasted from May to mid-June and retraced almost precisely 62% of wave-1: textbook.” And “the February-March [2021] correction [was a 4th wave] of an intermediate degree, one degree lower than the current correction. It lasted a month and consisted of four dips and three rallies. But the overall pattern was more of sideways congestion, e.g., called a “Bull flag.” Besides, the correction retraced precisely 38.20% of wave-iii. Hence, since we are now dealing with a major-4 type correction, I expect a similar pattern to emerge over the next few weeks.

Thus, based on these lines of evidence, I continue to view SOL in a major 4th wave, with the first move (red, intermediate wave-a) completed. As explained, corrections always have at least three movements, and thus the 2nd move (red wave-b) is now underway. Ideally, it should target $200 +/- 10 before the third move (red wave-c) down kicks in.

But please remember, if the March-February intermediate wave-iv correction has taught us anything, then we know this current major wave-4 can have a few more tricks up its sleeve. Hence, it is nigh impossible to foresee each twist and turn, but the EWP can forecast the overall expected pattern well.

Thus, as long as SOL can stay above the September 23 high of $152, it can move higher into the ideal $200+/-10 target zone. Below $152 will increase the odds significantly for a revisit of the mid-September lows.

However, IF this is a flat correction, SOL will need to move higher to the ideal target zone. Otherwise, major wave-4 could morph into a (dreaded) triangle. Besides, please note SOL can even rally to as high as $240 and still be in a complex 4th wave. In that case, it will be called an irregular flat. But, a move >$254 will mean the correction has already ended. Thus we have our if/then parameters in place.

Bottom line: A few weeks ago, I showed that Solana (SOL) had “completed a more significant 3rd wave and is now in a 4th wave correction … [which] will likely be a long-drawn, sideways movement with numerous, hard to precisely foresee, rips and dips….” So far, thanks to the patterns EWP can predict, this was the correct POV as SOL has now corrected the most since the June low, which was a major wave-2.

The correction did present us with a few extra twists in September as well, but as I tell my premium crypto trading members, “focus is on the intermediate-term (weeks to months), as we navigate through this wave-4.” As such, I view the current rally as part of the aforementioned “dead cat bounce,” which needs to hold $152 to target $200+/-10 with an outside chance of $240. Below $152 will target the $110s once again.

For a look at all of today’s economic events, check out our economic calendar.

News Source

جواب چھوڑ دیں

براہ مہربانی اپنی رائے درج کریں!
اپنا نام یہاں درج کریں