This is the second part of a trading idea for the SOL coin. In my first trading idea, published in August 2022, I warned everyone that the price would fall and reach $14-15 per coin.
On December the price of the coin reached a minimum and touched the $8 mark per coin.
I recommend that you review the first part of the trading idea about this coin to understand what we will be discussing in this review, the link is provided below.
Today, we will talk about the SOL coin, analyze important turning levels, all possible scenarios of movement, and decide when it is still worth buying or when to get rid of it.
Let’s start by looking at the SOL coin chart.
We can see that the coin is in a horizontal corridor and is moving strictly in a price range from $19 to $26.50.
It had a false breakout, after which the price returned back to the horizontal corridor and has been moving in it for 133 days.
I want to remind you that a similar scenario occurred with this coin when the price also moved in a horizontal corridor for 175 days, there was a false breakout with a return to the corridor. Only last time, the price broke through the lower channel line, which led to a 75% price collapse and reached the level of $8 per coin.
What will happen next?
This question is now of interest to the entire crypto community – will the price continue to move or will we start moving upwards! Let’s first analyze the important levels.
If the price breaks through the $27 mark per coin, it opens the way to the nearest resistance line at $48. I want to remind you that last time, the price could not break through this important level, which led to a 75% price collapse. Only after breaking through and consolidating above the $46 level can we consider it as the beginning of a bull trend!!
Let’s analyze possible scenarios for future movement.
Option 1: The SOL coin repeats the November scenario, the price breaks through the support line at $18 and continues to fall to the middle price of the channel, and then to the lower part of the channel, as it did in November, reaching the $5 mark per coin.
Option 2: The coin begins to move upwards, reaching the upper line of the horizontal channel at $22, after which the price may continue to rise, and only if the price rises above the $48 mark can we confidently say that the upward trend has begun.
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