SOL/USD occupies the lower realms of its value range still, and has even produced a slight incremental climb higher in the past day which may attract thrill seekers.

SOL/USD is trading slightly above the 52.0000 level as of this writing. This past weekend however, Solana spent some of its time traversing near the 49.0000 juncture as some early selling pressure developed on Saturday and shadowed the broad cryptocurrency market until Sunday morning. Since then, a slight incremental climb has been achieved and traders may find the current conditions attractive.

As a warning, SOL/USD still is within the lower tier of its long term price range, Solana is traversing prices not seen in earnest since August of 2021. Yes, on a spike lower when violent selling hit the digital asset market the 12^th of May, SOL/USD did penetrate the 36.0000 ratio briefly. While some may point to the gains SOL/USD has made since then and proclaim a victory and a parade higher to gain momentum, these people will be in short supply.

Day traders need to remain cautious with SOL/USD, and the best recommendation may be to seek fast hitting trades using risk taking tactics which cash out of the market quickly while seeking to ‘scalp’ the cryptocurrency market.  Gains have been seen in the major counterparts of Solana also, but the reversal higher across the digital asset board could prove to be short lived. Nervous conditions remain and a true breakout higher technically has not been spotted as a trend.

Using take profit orders to accomplish a winning bet on upside price action to challenge nearby resistance may feel worthwhile. However, stop loss risk management should be fully in place, just in case a sudden rush of selling is about to emerge again. Resistance near the 52.7500 level looks like it may prove durable. If support near the 51.7500 mark suddenly finds that it is vulnerable SOL/USD could find lows being tested rather abruptly again.

Behavioral sentiment in cryptocurrencies has proven a difficult battle; reminders of the long term bearish trend are still in clear sight.  While some speculators may feel the need to look for reversals higher, cautious traders who are still skeptical of the cryptocurrency market may believe remaining a seller of SOL/USD after slight climbs have been seen, is a way to ignite selling positions while looking for support levels to be challenged again sooner rather than later.

Solana Short-Term Outlook

Current Resistance: 52.7500

Current Support: 51.7100

High Target: 56.0600

Low Target: 48.8800

Looking like it is  going to remain a “buy on the dip” market 

Ethereum markets spiked higher during the trading session on Monday to break above the $3500 level. However, we have given back those gains to show signs of hesitation and exhaustion, forming a shooting star. The shooting star is a very negative candlestick and does show that there is quite a bit of pressure in the $3500 level.

Furthermore, the 50 Day EMA is starting to turn higher, perhaps getting ready to break above the 200 Day EMA. This would be a “golden cross”, something that longer-term traders pay close attention to as a “buy-and-hold” sign. The market has recently broken out of a massive “W pattern”, which is also bullish. In other words, most of this chart looks bullish with the exception of the candlestick and the $3500 level that has proven to be important over the last 24 hours.

More likely than not, any pullback at this point will probably be an attempt to find support underneath to build up the necessary momentum to continue the uptrend. However, we have rallied so significantly that it would not be surprising at all to see this pullback before we can truly take off to the upside. I believe that the market is still bullish as long as we can stay above the $3200 level, perhaps even the $3000 level.

Alternately, if we were to break above the top of the candlestick for the trading session on Monday, then it could open up the possibility of a move to the $3750 level, perhaps even the $4000 level. The “W pattern” has a “measured move” that suggests that we should go to the $4500 level eventually, but the keyword here is going to be “eventually.” After all, the market does tend to be very noisy, but we are starting to see more positivity involving the merge in the Ethereum blockchain, so therefore it is likely that we would see more demand as time goes forward. However, we also have to worry about the risk appetite and profile of traders out there, because there are a lot of things out there that could cause headaches for higher-risk assets such as Ethereum, which has absolutely nothing to do with Ethereum itself.This looks as if it is going to remain a “buy on the dip” market.