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- SOL rose after losing 97% of its price and going through 2 years of capitulation.
- An analyst stated that people’s greed to buy SOL at a lower price has made them lose the chance of buying.
- SOL is testing the upper trendline of the rising wedge, it could retrace.
Crypto Analyst Jackis tweeted that Solana was presently rising after losing 97% from its all-time high which was then followed by 2 years of capitulation. Scrutinizing the people’s behavior of buying SOL, Jackis stated that the people get greedy and wait for it to go lower to enter the market. However, SOL started to rise before they could enter the market.
Imagine $SOL went -97% from ATH & through two major capitulationsPeople got greedy & wanted lower, instead, it started to go higher & outperform the restNow these people want a retest of (now prior) range low cause they missed the trainSeen it too many cycles in a row to… pic.twitter.com/B8JnUVRDle— JACKIS (@i_am_jackis) October 26, 2023
When observing the price activity of Solana (SOL), it could be noted that SOL was gaining value throughout the past week. It was trading at $24 when the market opened for sale. Thereafter it gradually rose with small retracements.
SOL reached its maximum value of $33.5 late yesterday. At press time, Solana is priced at $32.2 after experiencing a 4.20% decrease in price within the last 24 hours. Solana has been trading inside a rising wedge. However, as the rising isn’t fully formed, SOL might keep on rebounding off of both the upper and lower trendlines until the wedge is fully formed.
SOL/USDT 1-Day Chart (Source: Tradingview)
Currently, SOL has touched the upper Bollinger band and is overbought, hence, it increases the chance of SOL returning to the lower trendline. As per the best practice of trading a conventional rising wedge, it is normal to expect a price drop by the height of the wedge at the initial stages of formation. Hence, SOL may crash to $9.5 in the longer time frame. However, within the shorter time frame SOL may test the support at $22.
Moreover, if SOL maintains its shape inside the wedge then the lower trendline of the wedge would be the support. However, if the bulls are dominant, SOL could break this trading pattern and rise to $38.
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