⚡️ Hello everyone! I decided to update my thoughts on SOL. Everything is happening exactly as I wrote last time.
We went down and gathered some liquidity, and also closed the GAP. And now we are near strong resistance at 160-161.
Whether we can consolidate above this level is what will determine the direction of the next price movement.
⚙️ Let's take a look at the most likely direction going forward:
Money Flow - there was an outflow of liquidity at levels above 160, as profit-taking began after a strong rally from the April correction.
However, the inflow ratio is still neutral.
Liquidity Depth - a large accumulation of liquidity has gathered directly above us, at levels 187-200. And as we know, the price moves from one liquidity zone to another.
Overall, liquidity at the top is only increasing, with the difference now almost 5 times greater in favor of short positions.
DSRZ - strong resistance at levels 156-164. This must be overcome and turned into support in order to continue the momentum. As long as we are below it, this is a more bearish signal.
The next nearest liquidity zone is at 130 and below.
📌 Conclusion:
The next move now largely depends on the market as a whole. Historically, markets have frozen in the summer due to a lack of liquidity. However, this cycle has already shown many deviations, and another one would not be a surprise.
I am keeping my position open and continuing to monitor the situation. So far, the overall mood is bullish, and I continue to stick to my thesis that a move to at least 187 is likely, gathering liquidity from shorts in such an obvious place.
Have a great start to the work week, everyone! ☀️