Blockchain

The XRP price has had a mixed flow this month in terms of price action. The crypto surged by 25% in the first week of November to cross over $0.73, marking the first cross over this price point since June. However, XRP has since lost some of these gains. The crypto is now trading at $0.6574 at the time of writing and is down by 5.04% in a 7-day timeframe. 

According to crypto analyst and enthusiast Will Taylor, known as Cryptoinsightuk on social media, this is quite normal for XRP, and price history has shown it’s only a matter of time before it catches up. 

The analyst made this known while sharing his technical analysis on X (formerly Twitter). According to him, technical indicators point to liquidity rolling into XRP very soon, and a price takeoff is expected in less than two days.

Liquidity To Rotate Into XRP

Cryptoinsightsuk has predicted a further increase for XRP in the near term, resonating with other analysts observing a positive trajectory for XRP. The asset has mostly interlinked with the wider movements within Bitcoin and Ethereum since October’s lows. It has now lagged behind, with liquidity flowing to other altcoins like Solana and Cardano.

Technical analysis using the RSI indicator shared by Cryptoinsightsuk showed that XRP recently entered overbought territory since it rose a lot in a short period of time. The analyst pointed out that the last time the asset entered the overbought territory on the RSI, it continued to rally around 36%. 

Cryptoinsightsuk thinks we’re seeing the same pattern play out now, and a blast-off is imminent in the next 24 hours. A repeat of this rally from the current price puts a price target of $0.90 for XRP. 

$XRP Blast off T-2 days.

When we are surging in crypto markets, liquidity gets cycled into different alts. They then respectively pump.$XRP moved similarly in % to most Total 3 (Crypto Market cap – $BTC and $ETH) from the lows.
However, in recent times, it seems $XRP has… pic.twitter.com/f36zzOguXd

— Cryptoinsightuk (@Cryptoinsightuk) November 12, 2023

Technical Points To Look At For XRP Price Rally?

XRP is ready for a strong rally now that its growth is no longer suppressed by the SEC lawsuit. It has now formed support at the $0.65 level, and the first step will be to break over $0.70. The next resistance is at its yearly high of $0.80. Other bullish analyses have come in for XRP in recent days. A previous X post by Cryptoinsightsuk predicted a strong rally to $10 at least.

According to analyst ERGAG CRYPTO, XRP appears poised to reach at least $1.3 after breaking out of the current ascending triangle. Then a stronger price move to at least $5.5 dollar before retail investors start to sell off. 

There is a good possibility that XRP’s price may surge above $1 in the near future. However, this might not come to reality until a US judge finally addresses all regulatory uncertainties surrounding Ripple and XRP. The good news is that Ripple seems to have the upper hand at the moment.

Following a sideways weekend, the XRP price stumbled on a critical resistance level, forcing the token to revisit support. The crypto market is following a similar trajectory on short timeframes, but an analyst believes the current price action could set the stage for a bigger rally.

As of this writing, the XRP price trades at $0.64 with a 3% loss during today’s trading session. In the previous week, the token recorded a 7% loss, operating as the work performer in the top 10 by market cap, followed by Cardano (ADA), which recorded a 4% profit over the same period.

XRP Meets Resistance But Prepares For Bigger Run To The Upside?

According to a pseudonym analyst, the XRP price met resistance at $0.664, which could trigger potential scenarios. On the positive side, the cryptocurrency is targeting a key level at $1, the analyst believes.

As seen in the chart below, XRP needs to clear the high of its current range at $0.73 before making a run to the upside. At around $1, the cryptocurrency would climb above the 0.8 Fibonacci Extension, a series of levels used to measure resistance and support.

In that sense, $0.9 is the most significant resistance for XRP and its potential bullish run. The trader believes the bullish momentum dissipated after a close below the 0.66 Fibonacci extension, which could push the token back to $0.61 or $0.58 if bulls failed to push back.

On the upcoming price trend for XRP, the analyst stated the following, favoring a sideways price action scenario:

The side move is continuing between $0.6649 & $0.6131, and the latter becomes important. We can touch here because we stayed below the target level. The target is still to hit $0.87 and $1.05 in the very short term, but the prerequisite is to stay above $0.6649.

When Will The XRP Price Hit $1?

Previously, the same analyst claimed that the resistance at $0.66 opens the door for a run at the $0.7 level, as mentioned. The analyst believes the token could break above these levels in the coming month.

XRP could hit $0.87 on November 19th if the bulls successfully attempted to breach this resistance. Corresponding with the Elliot Wave Theory, the analyst concluded:

XRP broke the 4-hour support of $0.6649 but is still strolling around it. The daily still has not broken yet. We call this C Wave Expanded C, and it’s completely technical. We wicked to $0.6287 yesterday & Fibonacci Support there is $0.6131. This correction is completely technical and routine. I trust $XRP to consolidate between $0.66 & $0.61 and continue to finalise the 5th Wave at $0.8737 very soon.

Cover image from Unsplash, chart from Tradingview

An analyst has pointed out how Chainlink is forming a TD Sequential sell signal right now, which could lead to a retracement to this level.

Chainlink Could Decline To $12.50 Following The Sell Signal

As explained by analyst Ali in a new post on X, LINK could be heading toward a correction based on what the TD Sequential signal says. The “Tom Demark (TD) Sequential” is a popular indicator in technical analysis that is used to pinpoint reversals in the price of any asset (which, in the current discussion, is naturally Chainlink).

The metric gives a signal whenever the asset has seen nine candles following a reversal in its price. The signal is a sell one if the candles are green, while it’s a buy one if the candles are red.

This phase is called the “setup phase.” Once the setup is done, a 13-candle long countdown phase kicks off. At the end of these 13 candles, the price could be believed to have hit another probable bottom or top (depending on whether the phase started with a sell or buy signal).

Chainlink has recently been enjoying some very rapid growth, which has led to the asset’s price hitting heights not seen since April of last year. This run, however, may be going toward at least a temporary setback, as according to Ali, a TD Sequential setup phase seems to have finished for the cryptocurrency recently. The signal has in fact appeared on not just one, but three of the coin’s price charts: daily, 3-day, and weekly.

Here are the charts as shared by the analyst:

As displayed in the above graph, the Chainlink TD Sequential setup phase has finished with green candles on all of these LINK charts, implying a reversal towards the bearish side may be imminent for the cryptocurrency.

Ali anticipates that the retracement would be towards the $12.50 level, which would mean a drawdown of more than 18% from the current price level of the asset. “Failing to hold above this critical support area could extend the losses to $10.50,” the analyst further adds.

Such a decline all the way to $10.50 would suggest a decrease of over 31% for Chainlink, but even if such a steep drop happens, LINK still wouldn’t have fully undone the recovery it has made since the last third of October, showing just how sharp the asset’s bullish momentum has been recently.

It now remains to be seen what trajectory the asset takes from here considering this bearish signal. So far, chances are not looking in the favor of the coin, as it has seen two red candles already since the pattern has formed, implying that the countdown phase might have begun.

LINK Price

Chainlink had risen above the $16.5 mark during the weekend, but the coin has taken a hit in the past day as it’s now close to the $15 level.

The entire crypto industry is waiting for the approval of Spot Bitcoin ETFs in the US to upend the market and herald the next extended bullish run for BTX. However, Chief Economist Peter Schiff is of another thought and is of the idea that a BTC price crash is on the horizon even before the SEC gives the green light on spot Bitcoin ETFs. 

Economist Peter Schiff Warns of Potential Bitcoin Crash

Schiff created a poll on social media recently and asked his more than 980,000 followers to vote on a timeline for the next Bitcoin crash. The poll attracted a total of 24,599 votes, with the majority of respondents indicating that they anticipate a decline in price well after spot Bitcoin ETFs are approved. However, a majority (68.1%) choose the “Buy and HODL till the moon” option, indicating the long-term holding sentiment of many BTC traders. 

When will #Bitcoin crash?

— Peter Schiff (@PeterSchiff) November 9, 2023

Schiff disagreed with the outcome of this poll voted on by his followers. The economist is of the notion that the results pointed to a crash before the ETF launch despite the option receiving only 8.9% of votes.

Based on the results my guess is that Bitcoin crashes before the ETF launch. That why the people who bought the rumor won’t actually profit if they wait for the fact to sell.

— Peter Schiff (@PeterSchiff) November 10, 2023

This thought process is definitely not what Bitcoin bulls want to hear right now, as the post attracted comments disagreeing with Schiff. One user stated, “I would say that based on your results 70% of your followers hold #Bitcoin, that should tell you something.”

Why Does Peter Schiff Predict a Crash Before ETF Approvals?

Schiff had made a post last month during Bitcoin’s climb above $30,000 to give some sort of explanation on his thought process. According to him, investors are buying BTC now because they expect more investors to rush in once spot Bitcoin ETFs are approved. But there could be more people waiting to sell and make a profit on the price influx. 

This statement could be somewhat true, as BTC could crash if holders decide to sell their assets during soaring prices. As expected, many investors disagreed with him.

Speculators are buying #Bitcoin now because they think other speculators are waiting to buy a #BitcoinETF. They will soon discover that there are far more speculators waiting to sell then waiting to buy!

— Peter Schiff (@PeterSchiff) October 23, 2023

Schiff has been known to make comments contradicting market sentiment around Bitcoin. A post made as far back as November 2018 showed the economist saying Bitcoin could crash from $3,800 to $750. The cryptocurrency would go ahead to reach $13,000 in the months after.

Don’t make the mistake of thinking that buying #Bitcoin below $3,800 is a bargain just because the current price is better than 80% below its record high. Bitcoin’s price could easily drop another 80% from here, and at $750 it would still be expensive!

— Peter Schiff (@PeterSchiff) November 25, 2018

The Bullish Case For Spot Bitcoin ETFs

With SEC approval of Bitcoin spot ETFs seemingly on the horizon, the bullish case for Bitcoin is building. The introduction of spot ETFs will usher in a new wave of investors and inject new money into BTC that could drive prices far higher long term. 

The SEC has reportedly set a window from November 8 to 17 to decide on applications, but the industry could see the decision delayed until January 2024. 

Bitcoin is trading at $36,990 at the time of writing and is eyeing the next resistance at $37,000.

In a recent analysis, crypto analyst “Flip The Chain” highlighted insights from Michele Worthington, a project manager and designer for San Francisco’s properties and luxury homes. Worthington’s comments, primarily focused on XRP, present a detailed view of the digital currency’s future beyond mere market speculation.

XRP Set To Break Free From Speculative Pricing

Worthington’s analysis begins with a clear distinction: “While XRP’s pricing is currently driven by speculation, akin to many other tokens including Bitcoin, it’s poised for a significant shift. As the financial payments sector, historically slow in adopting digital technologies, progresses, XRP’s pricing mechanism will diverge from these speculative trends.”

According to her, this change will make XRP immune to traditional market fluctuations, crypto-related events like the Bitcoin halving events, or “sporadic” news cycles.

She outlines XRP’s unique advantages for banking and financial institutions. “XRP stands out for its ability to execute bank payments in mere seconds at a fraction of the cost. To illustrate, a cross-border transfer of $50M can be done for as little as 30 cents. Such efficiency is pivotal in the financial sector.”

The integration of XRP with Central Bank Digital Currencies (CBDCs) is highlighted by Worthington as a key factor for its future trajectory. She notes, “The synchronization of international compliances and regulations is crucial for CBDCs to effectively integrate with XRP. This has been the focus of numerous pilot tests and partnerships, leading to the adoption of the ISO20022 standard. The standard is set to debut on November 19, with a transition period until late 2025.”

2024: A Pivotal Year For Ripple

She also draws attention to Ripple’s strategic preparations for this shift. Ripple has formed a network of global alliances, including in “Japan, Australia, UK, Singapore, Hong Kong, Africa, Switzerland, Dubai, UAE, BRICS as well as with the BIS, IMF and more.” According to her, this sets the stage for 2024 as a pivotal year. Once the banking sector integrates with XRP, the influence of retail investors on its price will become negligible,” claims Worthington:

When the banks plug in, the small retail investor won’t make a dent in the price. Each XRP has to be a very high value to move a large part of the $7 trillion daily on the FX market worldwide.

Moreover, Worthington also highlights XRP’s potential in the tokenization of diverse assets, such as bonds and real estate, underscoring its non-exclusivity but significant role in handling substantial volumes, making the XRP token even more valuable.

On liquidity solutions, Worthington states, “XRP’s testing with over 30 central banks showcases its ability to alleviate liquidity challenges, particularly in transactions involving less liquid currencies.”

She concludes, “The role of XRP in currency transportation is unparalleled, especially in terms of scalability, interoperability, and liquidity. Its emergence as a revolutionary element in the financial sector is not just probable but imminent. […] XRP transports the currency. No other token can do this on this scale of interoperability with this kind of liquidity. It’s revolutionary.”

It’s important to note that the views and predictions shared by Michele Worthington represent her individual perspective on XRP’s future. As with any analysis, her insights should be considered as part of a wider range of expert opinions and not as definitive forecasts.

At press time, XRP traded at $0.6536.

Throughout the majority of the year, the Avalanche (AVAX) coin has seen a predominantly bearish trend. However, it has recently exhibited a noteworthy resurgence.

Avalanche has demonstrated remarkable performance within the cryptocurrencies sector, exhibiting a significant increase of 10% during the past 24 hours.

The AVAX price, which is currently valued at $18.12, exhibits a bullish engulfing candlestick pattern. From an optimistic perspective, the escalating demand has the potential to drive the bullish trend to surpass the $20 threshold.

Indeed, the recent surge of 45% in the altcoin’s value over the past week has facilitated its ascendancy to the apex of the current top 20 coin rankings.

The AVAX cryptocurrency is now experiencing an upward trajectory, with its objective being the reacquisition of the $20 threshold. Will the cryptocurrency surge persist, leading AVAX to exceed the $20 mark, or is a potential retracement on the horizon?

The price of Avalanche has recently increased substantially for three key reasons. First off, it had a significant increase subsequent to the announcement made by Coinbase on its plans to incorporate support for AVAX and SOL perpetual futures contracts.

In the majority of instances, the value of cryptocurrencies experiences a significant increase following their inclusion on one of the largest global exchanges.

Secondly, the success of the token’s rise is consistent with that of other cryptocurrencies such as Ethereum, Solana, Chainlink, and Bitcoin.

Supporters of a spot Bitcoin ETF are jubilant about its possible approval. Additionally, Blackrock submitted an application for an Ethereum ETF last week.

Investors thus anticipate that entities such as Blackrock, Invesco, and Grayscale would apply for additional token ETFs as their next course of action. Avalanche will be a great one to see if this occurs due of its enormous scale.

Avalanche has gained significant popularity on numerous social media platforms. Further evidence indicates that there has been a notable upward trend in the open interest of futures. The total revenue reached a peak of more than $156 million throughout the course of the weekend.

Bybit, OKX, and Bybit accounted for the remainder of this open interest, after Binance. A significant increase in futures open interest generally indicates heightened demand.

As the cryptocurrency community eagerly watches AVAX’s ascent, the question remains: will it maintain its momentum and breach the $20 mark, or is a retracement on the horizon? Time will tell as the cryptocurrency market continues to evolve.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Pixabay

The Bitcoin price has been trading in a tight range around the $37,000 price level through the weekend. This tight trading suggests that there is a lot of fighting going on right now between the bulls and the bears as each camp tries to gain an upper hand over the other. As this tug of war continues, a crypto analyst has presented the most important level that will determine whether the bulls or the bears will claim dominance.

$31,000 Is The Magic Number For The Bitcoin Price

Crypto analyst Ben Vouh took to TradingView to share their analysis of where the price of Bitcoin will be depending on whether the price stays above or below $31,000. According to the analyst, this level is the most important determinant factor for whether the Bitcoin price will continue its uptrend or crash back below $20,000.

The two scenarios presented include whether the Bitcoin price closes the week above or below $31,000. If Bitcoin were to close the week below the $31,000 level, then Vouh expects a massive crash to follow. This crash could see the price fall to $18,400, as illustrated in the analyst’s chart.

For the second scenario, if the Bitcoin price is able to close the week above $31,000, then the crypto analyst expects the uptrend of the last few weeks to continue, putting the top above the $42,000 mark. This would translate to another 20% move for the cryptocurrency’s value.

The crypto analyst highlights the fact that the Bitcoin Fear & Greed Index is sitting very high. At a score of 72, the crypto market is firmly in greed, which is a sentiment score that has often preceded crypto market crashes. Given this, the analyst advises investors to be careful during this time. “I would recommend to just hodl and wait,” Vouh said.

BTC Starts Out The Week On A Slow Note

With the new trading week opening up, the Bitcoin price has not exactly started off on the most bullish note. It is trading below $37,000 as of the time of this writing and is seeing 0.46% losses on the daily chat. This could mean that investors are currently watching to see what happens next before making their next move.

The Fear & Greed Index has reached its highest level in 2023 so far, with a score of 74 on November 6. While prices have not begun to tank, there could be a crash on the horizon as the analyst points out.

One example of this was on April 16, 2023, when the Fear & Greed Index reached a peak of 68. In the next few days, the price would fall around $3,000, dropping from above $30,300 to below $27,400. The same was the case on July 12 when the index hit 64. This marked the top of the rally and the BTC price would go from $31,000 to below $26,000.

In his latest essay, Arthur Hayes, the co-founder of BitMEX, has laid out his investment playbook in the current global economic landscape, focusing on the potential of Bitcoin, cryptocurrencies, big tech, and traditional financial markets.

Dumb Trades

Hayes begins with a blunt critique of traditional investment strategies, particularly the purchase of long-term bonds in the current economic climate. He explicitly states, “The dumbest thing one can do is purchase long-term bonds with a buy-and-hold mentality.”

Hayes explains this viewpoint by highlighting the risks associated with these bonds, especially when liquidity conditions shift, saying, “You will experience a market-to-market gain today, but…the market will start to discount the impact of further Reverse Repo [RRP] balance decreases and long-end bond yields will creep higher, which means prices fall.”

Moving on to smarter investment approaches, Hayes acknowledges leveraging short-term debt, as exemplified by Stan Druckenmiller. Hayes notes that Stan Druckenmiller went mega-long 2-year treasuries. He remarked, “Great trade, brah! Not everyone has the stomach for the best expressions of this trade (hint: it’s crypto). Therefore, if all you can trade are manipulated TradFi assets like government bonds and stocks, then this isn’t a bad option.”

Hayes also argues that a trade “that’s a bit better than the medium-smart trade (but still not the smartest) is to go long on big tech.” Hayes focuses on AI-related companies. He identifies AI as a pivotal future technology, arguing, “Everyone knows that everyone knows that AI is the future. This means anything AI-related will pump, because everyone is buying it too. Tech stocks are long-duration assets and will benefit from cash being trash once more.”

Smart Trades: Bitcoin And Crypto

However, the smartest trade is to go long crypto, which has significantly outperformed other assets relative to the increase in central bank balance sheets. Hayes presented the chart below, comparing the performance of Bitcoin, Nasdaq 100, S&P 500, and Gold against the Fed’s balance sheet since March 2020, highlighting Bitcoin’s exceptional growth.

Hayes identifies Bitcoin as the primary investment target, describing it as “money and only money.” Following Bitcoin, he points to Ether as the commodity powering the Ethereum network. “Ether is the commodity that powers the Ethereum network, which is the best internet computer.”

He categorizes other cryptocurrencies, stating, “Bitcoin and Ether are crypto’s reserve assets. Everything else is a shitcoin.” He further elaborates on alternative layer-one blockchains like Solana, calling them “all overhyped, me-too, pieces of shit that won’t overtake Ethereum in terms of active developers, dApp activity, or Total Value Locked.”

Hayes also discusses decentralized applications (dApps) and their tokens. He finds this sector exciting for its high-return potential, though he acknowledges the risks: “Finally, all manner of dApps and their respective tokens will pump. This is the most fun, because down here is where you get the 10,000x returns. Of course, you’re also more likely to get rugged, but where there is no risk there is no return. I love shitcoins, so don’t ever call me a maxi!”

Geo-Economic Factors

Regarding his investment strategy in the context of current economic fluctuations, Hayes explains his focus on the net of RRP minus Treasury General Account (TGA) to gauge market liquidity, which informs his decisions on T-bill sales and Bitcoin purchases. He emphasizes the importance of adaptability, stating, “I will stay nimble and flexible. The best-laid plans of mice and men have a tendency to falter.”

Hayes also delves into geopolitical considerations, specifically the potential impact of the Hamas v. Israel conflict on oil prices and monetary policy. He notes Bitcoin’s resilience in such scenarios: “Bitcoin has proven to outperform bonds during times of war. […] The long-term US Treasury bond ETF has fallen 12% vs. Bitcoin pumping 52% since the onset of the Ukraine / Russia war.”

While he concedes that Bitcoin could fall in an initial move when Iran is drawn into the Hamas v. Israel war, it would be a “buy the dip” situation according to Hayes.

In a candid conclusion, Hayes comments on the historical context of geopolitical conflicts, expressing skepticism about the prospects for global peace: “Of course, if those in charge of Pax Americana committed themselves to peace and global harmony… nah, I’m not even going to finish that thought. These mofos have been practicing war since 1776, with no signs of letting up.”

According to Hayes, however, all roads lead to Bitcoin: “[It] will reassert itself as a real-time scorecard on the health of the war-time fiat financial system.”

At press time, BTC traded at $37,030.

A mysterious wallet surfaced from the shadows and masterminded a significant transfer of 17,895,970 MATIC—which translates to a staggering $14.7 million—directly into Coinbase, in a crypto twist that sent shockwaves through the digital landscape.

The surge in significant transaction volume has caused the MATIC price to rise above $0.80 for the first time since July. The market capitalization of MATIC has grown by 62% during the last four weeks due to increased turnover and acquisition by whales.

MATIC Mysterious Financial Maneuver Unveiled

During this enigmatic financial maneuver, the cryptocurrency universe witnessed Polygon’s MATIC token commence a bullish journey. It became more complicated as MATIC rose above the $0.75 resistance level, only to face a strong barrier at the $0.89 support.

At the time of writing, MATIC was trading at $0.88, up 8.5% in the last 24 hours, and tallied an impressive 27% rally in the last seven days, data from CoinMarketCap shows.

The recent increase in value is occurring in conjunction with a revitalized cryptocurrency market, propelled by a rising sense of confidence surrounding Bitcoin.

Nevertheless, the increase in MATIC’s price cannot be only attributed to general market sentiment. Empirical evidence indicates that the aggregation of large investors and significant collaborations have played a crucial role in driving MATIC’s breakout.

Institutional and whale demand has picked up strongly, with Bitcoin seeing an 80% increase in the volume of transactions of over $100k, Ethereum 170%, and Polygon over 3,800% compared to 30 days ago. pic.twitter.com/ElM1CDZ3wA

— IntoTheBlock (@intotheblock) November 11, 2023

According to IntoTheBlock, an on-chain analytics company, institutional and whale demand for the cryptocurrency space has significantly increased. In this sense, during the past 30 days, the amount of transactions involving over $100,000 has increased by 3,800% according to Polygon, an Ethereum scaling solution.

Based on data provided by the analytics platform Santiment, it has been seen that large-scale investors, commonly referred to as whales, with holdings ranging from 100,000 to 10 million MATIC tokens, have accumulated an excess of 42 million more tokens during the latter part of October.

Strong Buying Activity

In a 24-hour timeframe, a total of 161 transactions involving MATIC were executed, each surpassing a value of $100,000. This notable buying activity serves as a testament to the strong desire of significant stakeholders to accumulate MATIC holdings. The accumulation of assets has had a direct impact on the favorable movement of prices.

Increased Whale Appetite

Meanwhile, Coinbase has received over 55 million Polygon [MATIC] tokens, according to three different posts made by Whale Alert on X (previously Twitter).

The transfers were coming from unidentified addresses, according to the whale tracking handle.

19,896,435 #MATIC (16,443,201 USD) transferred from unknown wallet to #Coinbasehttps://t.co/dCSA4N6H3m

— Whale Alert (@whale_alert) November 12, 2023

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

Solana rallied above the $50 resistance against the US Dollar. SOL price is consolidating gains above $55 and might extend its rally above $65.

SOL price started a major rally above the $50 resistance against the US Dollar.
The price is now trading above $55 and the 100 simple moving average (4 hours).
There is a key contracting triangle forming with support near $51.00 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could restart its rally if it clears the $60.00 resistance zone.

Solana Price Sets Up For $75

In the past few days, Solana saw a major rally above the $40 level. SOL gained bullish momentum and cleared many hurdles near the $50, outperforming Bitcoin and Ethereum.

It even surged above the $55 and $60 levels. A new multi-week high was formed near $63.99 before the price started a minor downside correction. There was a move below the $60 level. The price declined below the 23.6% Fib retracement level of the upward move from the $38.05 swing low to the $63.99 high.

SOL is now trading above $55 and the 100 simple moving average (4 hours). There is also a key contracting triangle forming with support near $51.00 on the 4-hour chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

On the upside, immediate resistance is near the $60.00 level. The first major resistance is near the $65.00 level. A successful close above the $65.00 resistance could set the pace for a larger increase. The next key resistance is near $70.00. Any more gains might send the price toward the $75.00 level.

Are Dips Limited in SOL?

If SOL fails to recover above the $60.00 resistance, it could start a downside correction. Initial support on the downside is near the $55.00 level.

The first major support is near the $51.00 level, the trend line zone, and the 50% Fib retracement level of the upward move from the $38.05 swing low to the $63.99 high. If there is a close below the $51.00 support, the price could decline toward the $45.00 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $55.00, and $51.00.

Major Resistance Levels – $60.00, $65.00, and $75.00.