Based on the candlestick chart for Solana's (SOL) 1-day timeframe, here's a breakdown of how the past week has been and a forecast for the next week:
Past Week Performance:
1. Support and Resistance:
Resistance: Around 180 USD. The chart shows price movement approaching this level, but a clear rejection can be observed as price fails to sustain the rally beyond it.
Support: Significant support seems to be around 160 USD. The price had an upward breakout from this level, showing that this area provided solid buying momentum for the previous week.
2. Fair Value Gap Exploitation:
There appears to have been a gap around the 150 USD to 160 USD region in the previous price action. This gap was efficiently exploited during the uptrend, as the price moved sharply through this range.
3. Change in State of Delivery:
A key change in state of delivery occurred when the price broke above the 160 USD region. This marked a shift from a consolidation phase or downtrend to an upward momentum, signaling bullish dominance.
The sudden rejection near 180 USD suggests a possible retracement or exhaustion of buying momentum as sellers entered aggressively at that point.
Forecast for Next Week:
1. Support and Resistance (Going Forward):
Immediate Resistance: 180 USD will likely remain the key resistance level for next week. If this level is breached, the next target could be around 190 USD.
Immediate Support: 160 USD remains the critical support level. A failure to hold this level could bring the price back to the 150 USD region, which has historical significance.
2. Trend Projection:
The overall trend seems to be bullish in the short term, with higher highs and higher lows forming on the chart.
However, the rejection at 180 USD suggests the possibility of a brief retracement or consolidation before the next leg higher.
3. Fair Value Gap & Exploitation Area:
If the price retraces, the gap between 160 and 150 USD could be retested as a potential buy zone. This area could be exploited for accumulation by bulls looking for a continuation of the uptrend.
4. Change in State of Delivery (For Next Week):
Next week could see a change in sentiment based on how the price reacts at the 160 USD support. If it holds and buyers step in aggressively, we could witness a renewed bullish push toward 180 USD or higher.
If the support fails, a deeper pullback toward 150 USD or lower is possible, indicating a shift toward bearish delivery in the short term.
Trend Going Forward:
As long as the price stays above 160 USD, the trend remains bullish, and the focus should be on breaking the 180 USD resistance.
A breakdown below 160 USD could signal the beginning of a consolidation or downtrend, with the next strong support at 150 USD.
In summary, Solana had a strong week, but next week’s price action hinges on whether the price can hold 160 USD or break 180 USD, with the
potential for either consolidation or continuation of the uptrend.
