- Weekly and Daily Timeframes: Solana remains bullish overall, but recent price action hints at potential retracement
- Lower Timeframes: Bearish signals on H4 and H1 suggest short-term opportunities, with key supply zones in focus
- Potential Scenarios: Liquidity grabs above or below could determine the next significant move
Solana’s recent price movements present a fascinating mix of bullish and bearish signals across various timeframes. Here’s a detailed breakdown to help you navigate the action.
Weekly Timeframe: Bullish but Cooling Down
On the weekly chart, Solana reached a new all-time high (ATH) recently but is now showing signs of a slight pullback.
This could indicate a natural retracement following a strong rally, though the overall market structure remains bullish. Such corrections are typical and can be healthy for continued upward momentum.
Daily Timeframe: Still Holding Strong
Zooming into the daily chart, Solana’s bullish structure is intact, much like XRP‘s current setup.
However, traders should monitor closely for any weakening momentum. Retracements at this level might offer opportunities for re-entry, especially for those riding the bullish wave.
H4 Timeframe: Diverging Views on Market Structure
Here’s where things get interesting. On the 4-hour chart, the structure appears bearish, with lower highs and lower lows forming.
However, this interpretation depends on your trading style. Some traders may consider a shadow (wick) as a legitimate break of structure, while others wait for a confirmed close with a strong candle body.
That said, the supply zone identified in previous analyses remains relevant. Solana hasn’t yet reached this area, making it a point of interest for potential short trades if price action aligns.
H1 Timeframe: Focus on Supply Zones
Drilling down to the 1-hour chart, we see clearer opportunities for those eyeing short positions.
The supply zones highlighted earlier appear more defined and are worth watching closely.
These levels could offer potential entry points for bears if the price tests them.
M15 Timeframe: Reacting to Previous Demand
Finally, on the 15-minute chart, Solana shows a noteworthy reaction to a demand zone highlighted in our December 6 analysis.
While the bullish trend didn’t resume from this level, the reaction itself provided a short-term opportunity for savvy traders.
This demonstrates the importance of identifying key zones across timeframes.
Remember, no one can predict the market with 100% certainty. These scenarios are possibilities, not guarantees, and the market could still behave unpredictably.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice.
