Support Region Success
The market has reacted positively to the micro support region we've been monitoring. This support zone, defined between $125.81 and $135.04, has proven to be effective.
On Monday, July 8th, Solana dipped into this region for the first time, confirming its relevance as a support area. Despite the choppy price action, the overall trend remains upward.
The Bigger Picture: Wave Four Triangle
We're still within the wave four triangle pattern, a scenario we've been highlighting for months. While Solana's recent movements might seem lackluster compared to other coins, this defined support region and subsequent price action are promising.
After the initial test on July 8th, we witnessed a rally. Although this rally wasn't impulsive, it was followed by another support test, forming a higher low before breaking above the trend line.
Market Movements and Comparisons
Solana's break above the trend line aligns with similar movements in other cryptocurrencies like VeChain, ADA, and DOT. However, Solana's overall low doesn't seem to be in place yet.
We're anticipating a D-wave rally, followed by a higher low in the E-wave. The D-wave should ideally reach between $161 and $174, followed by an E-wave potentially targeting the $135 to $140 region.
Understanding the D-Wave Structure
Currently, we're in a corrective rally within the D-wave. This D-wave could either be a simple ABC structure or a larger WXY structure.
In the ABC scenario, we'd see a micro five-wave move, followed by an ABC structure in the B-wave, and then an upward movement. The WXY structure, which seems more likely, would involve an ABC structure in the W-wave, an X-wave down, and another ABC structure in the Y-wave.
Key Levels to Watch
The primary focus remains on key levels and support regions. We've identified an additional micro support region between $137.25 and $142.4. While this isn't the most reliable support zone, it provides an area to watch. If the price breaks below $144.61, it could signal the start of a decline in the small B-wave, likely a corrective pullback before continuing with wave C of Y.
Stay tuned for more updates as we continue to navigate Solana's market movements. Remember, while the micro-level details keep things interesting, it's the key levels that truly matter.