Why SOL Momentum Isn't Fake This Time?
2024-09-27


Since March 1, 2024, SOL has been holding above $126 and is about to complete its 7th month at this level.

During this 7-month horizontal period, the price has formed 3 highs and 3 lows. The probability of the 4th high being even higher is greater because it has held its main support above $126 for this period, indicating a healthy accumulation.

Boxes

Looking at the boxes, we see that the price moved horizontally for a few days in the left blue box, then moved horizontally for a few days in the yellow box, and continued upward.

Looking at the right boxes and the same price regions, we see that the best-filled low region is the blue box, which is the 3rd low region. This is because the candles in the blue box were completely contained within this price range, filling it well. This pushed the price to the yellow box region.

In short, we see a price that is moving forward with a healthier accumulation compared to previous periods. This makes the picture bullish for now.

We can use these box regions as support in case of potential pullbacks. If we lose these regions, we can change our minds. But it may continue upwards without spending more time there.

Explanation of technical terms:

  Accumulation: The buying of an asset over time, often at a lower price. A healthy accumulation phase is considered bullish.
  Highs and lows: These refer to the highest and lowest prices reached during a specific period.
  Support: A price level where buying interest is strong enough to prevent the price from falling further.
  Boxes: These are likely referring to specific price ranges or patterns on a chart.
