☕️Solana (SOL) is in a market correction but is approaching a major support zone. If this support holds, it could be the foundation for a significant upward price move in the future.
♨️Detailed Breakdown of the Analysis
☕️Overall Market Context
The text states that the market has been in a correction since mid-September and is now reaching a "first major support zone." This suggests the analyst sees the current downturn as a normal, healthy pullback within a larger bullish trend, rather than the start of a bear market.
☕️Key Support Zone
The primary support zone is identified as $138 to $118. This is considered a critical area where buyers are expected to step in, potentially halting the decline and establishing a base for a new upward move.
☕️Fibonacci Retracement Levels
The chart uses Fibonacci retracement levels, a common technical analysis tool, to measure the pullback from a previous low to a high. The key levels mentioned are:
🌴38.2% Retracement at $343.43: This level was likely a previous support that has already been broken, confirming the current correction.
🌴61.8% Retracement at $158.30: This is a deep retracement level and aligns closely with the top of the main support zone ($138-$118). It is a level where traders often look for a trend reversal.
🌴78.6% Retracement at $117.96: This is an even deeper retracement and forms the lower end of the main support zone. Holding this level would be a very strong bullish signal.
🌴The fact that the price is approaching the 61.8% and 78.6% levels suggests the analyst is looking for a potential reversal point in this deep retracement area.
☕️Potential Scenarios
· Bullish Scenario (What the post suggests): The price finds strong buying pressure within the $138-$118 support zone, holds above it, and begins a new upward wave, potentially aiming for previous highs near $549.
· Bearish Scenario (Risk): If the $118 support level breaks decisively, the next major support levels are much lower, as indicated on the chart ($90, $81, $62). This would invalidate the bullish setup and signal a deeper correction is underway.
🧭Important Disclaimer♨️
This is not financial advice. The analysis presented in the image is one perspective on the market.
· Past Performance is Not Indicative of Future Results: Technical analysis is not a guarantee of future price movement.
· Do Your Own Research (DYOR): Always conduct your own research and consider multiple sources before making any investment decisions.
· Volatility: Cryptocurrencies are highly volatile assets, and prices can change rapidly.
