I don’t think that there’s any reason to be buying Solana anytime soon.

Solana tried to rally early on Monday but pulled back as we continue to see this market drift lower. This is no different than anywhere else in the crypto world, as we continue to see money flow away from it. We are in “crypto winter”, meaning that the markets are going to do very little but maybe drift lower for quite some time. Risk appetite has been destroyed, as we have seen central bank policy shift rather drastically.

This is a bit ironic, considering crypto is supposed to operate outside of the world of traditional finance. However, it looks as if crypto needs all of the same things that traditional finance does, and when you think of Solana, you should think of something like a mid-cap stock, as it is relatively well known and traded. But at the end of the day, it’s not necessarily something along the lines of Bitcoin. It is still speculative, even by crypto standards, although there are many more speculative coins out there.

Solana certainly looks as if it probably has some type of future, but it is a competitor to Ethereum, and therefore it will probably always play second fiddle to that ecosystem. In a scenario where crypto is considered to be toxic, brand-name recognition is a huge benefit. Because of this, I think Ethereum will continue to outshine Solana, perhaps for the next few years, perhaps forever.

The $20 level is the next major level on longer-term charts that I am paying attention to, and I do think that’s where we eventually end up. Ultimately, Solana will bottom, but where that is going to be is hard to tell because the markets quite frankly have seen so much damage. This is the type of damage that can go on for months or years, so I don’t think that there’s any reason to be buying Solana anytime soon. In fact, at the very least, Solana would have to break above the $60 level to look remotely interesting. That would be a gain of 50% from the current price, something that is not easily done. Because of this, I think Solana should be thought of as dead money, or perhaps something that you can buy down the road at a much cheaper price and start to accumulate again for the next ball run.

The best thing that can happen to Solana is getting rid of some of the dead weight in the crypto world.

The Solana market has pulled back a bit during the trading session on Thursday as we continue to see the market drift lower overall. The Solana market seems to be attracted to the $30 level, but when you look at support and resistance on longer-term charts, you will notice that the $50 level has been resistance, just as the $20 level had previously been important underneath.

The Solana market has taken a major nosedive with the rest of the crypto markets, and therefore I think you need to look to the bigger coins in order to determine where this market goes. At this point, most institutional money does not care about these other smaller projects, whether they are faster or slower than Ethereum is completely irrelevant. Yes, Solana is a major player in the improvement of crypto, but at the end of the day, it’s not much in the way of being investable currently.

If we do continue to go lower, I would anticipate that the $20 level should be worth paying close attention to, because if we break down below their Solana will fall apart. At that point, I would anticipate that the market will bang around and very low numbers and kill time until the rest of crypto can advance.

If that were to be the case, pay close attention to the Solana ecosystem, and all of the news coming out of it. After all, this is a market that needs some type of good news, plus we are in a situation where a lot of crypto markets may disappear permanently. It’s going to come down to whether or not a network is viable from a usage case standpoint at this point. The years of easy and cheap money flowing into the market are over with now, therefore crypto is going to have to stand on its own. It’s hard to imagine that crypto is suddenly going to take off to the upside without a certain amount of good news and real-life use. Quite frankly, most crypto is a solution looking for a problem, and we are about to see 90% of networks and coins disappear. This does not necessarily mean that Solana is in trouble, but a lot of crypto is. As long as that is going to be the case, the best thing that can happen to Solana is getting rid of some of the dead weight in the crypto world.

In yesterday’s trading SOL/USD tested long term price levels not sincerely tested since April of 2021, a slight reversal higher than took Solana to a short term high of nearly 30.0000.

SOL/USD continues to produce fast trading conditions. As of this writing, SOL/USD is near the 28.5000 ratio, but price action is fast as important support levels are certainly within view and are being challenged. In early trading yesterday, Solana briefly broke below the 26.0000 mark, but a reversal higher took SOL/USD actually above the 30.0000 momentarily.

Intriguingly SOL/USD remains above its price levels from February and March of 2021. While most other major cryptocurrencies are testing values with more distant time ratios, SOL/USD has not experienced a complete collapse of its price band quite yet. The ability to stay above the lower prices as last year’s over exuberance developed in the broad cryptocurrency market makes SOL/USD worthy of consideration for speculative wagers.

If a trader remains skeptical about the values of SOL/USD within the bearish trend which is being demonstrated, they may be tempted to believe lower depths await Solana. While the 26.0000 was challenged for a moment yesterday, SOL/USD could not puncture the mark lower. Current price action which shows SOL/USD above the 28.0000 could look like a value which may prove vulnerable, if more selling escalates in the broad cryptocurrency market.

Traders who have a speculative taste for adventure need to use their risk taking tactics wisely.  SOL/USD moves exceptionally fast in normal times, so entry price orders are needed to make sure the fill meets expectations in the wildly volatile conditions now being experienced. If a speculators chooses to short SOL/USD near the current price ratios above 28.5000 and look for downside they cannot be blamed.

If the 28.0000 mark were to be flirted with this could set off another test of values seen yesterday. The 27.5000 to 27.2500 marks seem justifiable as targets for short sellers. If SOL/USD were to fall below the 27.0000 juncture, traders who are participating with selling positions should not get overly greedy and be willing to cash in winning trades.

SOL/USD remains a major cryptocurrency trade and its price action is fast.  Under the present volatile conditions and bearish trend which has been demonstrated with plenty of force, looking for additional lower depths is the logical choice for traders willing to bet on direction. However, speculators need to understand that the broad digital asset market is producing violent results and conservative trading needs to be practiced.

Solana Short-Term Outlook

Current Resistance: 28.6800

Current Support: 27.5500

High Target: 31.0900

Low Target: 24.9600

Crypto is a complete dumpster fire at the moment and will continue to be for the next several months, if not years. 

Solana did very little on Wednesday, which is a bit impressive considering just how negative it has been previously. After all, if it cannot find buyers down here to get something positive going, the question then becomes whether or not it ever will? Obviously, it could but Solana has been extraordinarily bearish for quite some time, and I just don’t see how this changes. The market is now threatening the $40 area and has already broken below it.

Looking at these last couple of months, we have formed a nice descending triangle, measuring $20. At this point, it looks like Solana will go looking to the $20 level on a breakdown. At this point, we would have to look at the previous action in the area, as it was so important. This would be a complete “round-trip” for the Solana market, something that even Bitcoin is threatening to do if it breaks down through a few small levels. Crypto is dead in the water at the moment, so unless you are a longer-term investor, there won’t be anything to do with Solana and other coins.

The market would have to break above the $60 level, meaning gain 50% for it to be even remotely close to flipping to bullish. That being said, I suspect the most likely situation will be that we go down to the $20 level, and then drift a little lower than that where we go sideways and wait to see whether or not Solana sees any type of significant adoption. Crypto is a complete dumpster fire at the moment and will continue to be for the next several months, if not years. You need to see other markets such as Bitcoin and Ethereum turn around before you can even remotely consider Solana.

That being said, I’m not completely against the idea of buying some Solana after it breaks down again, and then slowly building a bit of a position. After all, if you can buy it at $20, and it turns around to reach the highs again, it would be a 10-bagger. I have no idea how long that would take, but obviously, it is something that you can think about. You also have to recognize that Solana is very speculative as all crypto is, so never speculate with money you can’t afford to lose.

You need to pay attention to the bigger coins first so you can get a bit of a “heads up” as to what can happen in places like this.

Solana bounced a bit on Monday as value hunters came in to pick up the coin. That being said, we are also in the midst of forming a massive descending triangle, just as we are in the Ripple market and so many others. What this tells me is that we are more likely than not to get a continued breakdown, which makes quite a bit of sense considering all of the problems with the Solana network.

At this point, I think it’s safe to say that we are essentially entering “crypto winter”, and as a result, all moves will take their cues from Bitcoin and Ethereum. Don’t believe me? Go look at the Bitcoin chart, because it looks almost identical to this one. It’s not until Bitcoin can pick up traction that Ethereum can. Once Ethereum picks up a bit of traction, then you can start talking about other coins such as Solana.

If you are a big believer in the Solana project over the longer term, you will more likely than not be better served waiting for the markets to complete breaking down. There’s nothing on this chart that suggests that we are done, and as a result, I think it is probably only a matter of time before we see traders come back in and start selling this market again. The 50-day EMA is sitting just above the crucial $60 level and is sloping lower. In fact, if I were to come up with a screenshot of a chart that shows a perfect downtrend, I could use this one.

I would anticipate that the $30 level could cause a little bit of support, but ultimately, we are going to blow through that rather easily. At this point, Solana would have to gain almost 50% to reach the 50-day EMA, something that does not look likely to happen anytime soon. In fact, the later we got into the day on Monday, the more the gains we gave back. At this point, I think a lot of the hype around crypto is starting to come off again, so we probably have several months, if not a few years to start thinking about building longer-term positions again. Again, you need to pay attention to the bigger coins first so you can get a bit of a “heads up” as to what can happen in places like this.

SOL/USD has traded lower in early market action this morning, after hitting solid short term highs the past two days the cryptocurrency faces a struggle.

SOL/USD is trading below the 45.0000 level as of this writing with its typical fast conditions. Solana was able to provide bullish traders with upside movement the past two days and challenged the 48.2500 vicinity on the 30^th and 31^st of May, but headwinds have settled into the broad market for many of the major digital assets as potential profit takes an effect.

While SOL/USD was able to demonstrate a rather solid incremental climb the past handful of days, the cryptocurrency still remains within the lower part of its long term price range. Solana remains dangerously close to its prices of August 2021. Most other major cryptocurrencies plunged through their August and July prices of 2021 a few weeks ago, when massive selling hit the digital assets, but SOL/USD has been able to remain above these ratios.

The move higher the past few days has been encouraging for bullish traders, but because SOL/USD remains so close to its August 2021 prices, skeptics may still believe further room can be explored lower.  The broad cryptocurrency market remains within its bearish trend, a few days of positive trading may be the start of a strong reversal higher, but it may prove to only be a vacuum sucking people in who are optimist and preparing to cost them money if the downturn picks up momentum again.

If SOL/USD were to fall below the 44.0000 price short term, this would be a poor indicator.  Rather important support lurks near the 43.0000 level and if bearish selling suddenly shows price velocity this could prove to be a rather negative signal for Solana. On the 27^th of May SOL/USD was trading below the 41.0000 level momentarily. If market conditions in the broad market remain caught in a downturn, SOL/USD has the ability to fall to lows not tested since July of 2021.

SOL/USD is a fast mover.  Speculators need to use their full array of risk management when trading Solana, including entry price orders, take profit and stop loss tactics. SOL/USD was able to show some optimistic results the past few days, but a reversal lower would not be a surprise at this time with a re-test of lows seen only a handful of days ago when Solana traded below 41.0000.

Solana Short-Term Outlook

Current Resistance: 45.6200

Current Support: 44.3000

High Target: 56.0600

Low Target: 42.2700

We are trying to form a short-term double bottom, so that might offer the possibility of a bounce.

Solana markets have fallen a bit during the trading session on Thursday to reach as low as $42. However, we have bounced ever so slightly since then, suggesting that we are trying to do whatever we can to find buyers. The $40 level is an area where we have seen a little bit of interest as of late, so you could make an argument for a small “double bottom” trying to be formed. That being said, there’s no reason to think that Solana is suddenly going to take off to the upside because quite frankly most of the crypto market is a complete disaster at this point.

If we were to break down below the $40 level, Solana will drop another $10 rather quickly, perhaps even fall all the way back down to the $20 level. Solana is going to continue to be eviscerated as long as crypto markets are struggling. After all, Solana is rather far out on the risk appetite spectrum, so you need to be very cautious about the market as there are a lot of concerns out there. There’s no reason to think that people are suddenly going to jump into Solana when they cannot trust most other markets.

You also cannot ignore the “knock-on effect” of other crypto markets, as the bigger markets have struggled. Ethereum and Bitcoin both looked rather limp, so that will continue to drive money away from Solana. There is no way that people are going to feel comfortable buying this market if they are not comfortable buying Bitcoin. That being said, you can use the Bitcoin and the Ethereum charts as secondary indicators, as a strong move to the upside could have people looking for bigger gains in markets like this. The market will look at the $60 level in the Solana market as a potential resistance barrier. If we can break above there, then the next barrier will be the 50 Day EMA.

Regardless, this is a market that is in a major downtrend, and I just don’t see how it changes anytime soon. Adding more fuel to the fire is that the US dollar is strengthening overall, showing that there is a general run towards quality, and away from risk. That being said, we are trying to form a short-term double bottom, so that might offer the possibility of a bounce.

I look at rallies as an opportunity to short this market with a bit of leverage to increase profits.

Solana did very little on Tuesday as we continue to hang around the neighborhood of $50. This is a market that has been sold off quite drastically, and it looks like the rest of the crypto markets. Crypto is a disaster, and it is likely to get worse from here. As risk appetite continues to be eviscerated, money will flow into the US dollar, which is what Solana is measured by.

Any rally at this point in time will more than likely struggle to get above the $60 level. After that, you have the 50-day EMA which is sitting at the $79 level and dropping. I think that even if we do break above that $60 level, it is likely to be an opportunity to fade short-term rallies that show signs of exhaustion. The Solana market has been brutalized right along with some of the bigger markets, and it’s not until Solana gets a bit of a boost from places like Ethereum that something like Solana can rally. After all, it is a much smaller market than Ethereum, and if people are not willing to jump into that market, they certainly are not going to be interested in buying some of these smaller coins.

The market has been in a downtrend for a while, and therefore rallies are to be faded. If we break down below the $40 level, then it’s likely that we go looking to the $30 level. After that, the market then goes looking to reach the $20 level underneath that. At this point, the market is going to continue to be very noisy, but it is obviously a situation where you cannot be a buyer anytime soon. In fact, we would need to take out the $80 level to the upside in order to get long. Furthermore, we would also need to see bullish pressure in Ethereum and Bitcoin. Without those two markets rallying, there’s no chance that something like Solana will rally for a significant move. I look at rallies as an opportunity to short this market with a bit of leverage to increase profits. At this point, I have no real interest in trying to pick up Solana or any other small coin in the crypto markets right now. It’s simply far too dangerous.

I believe Solana is about to show its hand, and it is our job to follow whatever it tells us to do next.

Solana has shown itself to be attracted to the $80 level underneath, an area that should be supported based on historical action. This being said, it is an important day in the crypto markets, because the Federal Reserve has a very vital FOMC statement, and perhaps more importantly, a press conference afterward to give markets an idea of what they are going next. Quite frankly, a lot of the economic numbers have deteriorated rapidly, so it will be interesting to see how much wiggle room the Federal Reserve decides to give the markets.

While Solana is not the first thing you think of when it comes to the Federal Reserve, the fact is that you are measuring it against the US dollar. Extrapolating this out even further, you are measuring risk appetite, and crypto, in general, is pretty far out on that spectrum. As long as that is the case, Solana is going to struggle without some type of animal spirit entering the marketplace. Remember, Bitcoin is the first place people put money when it comes to the crypto markets, followed by Ethereum. It is only after that the people start to think about places like Solana.

The $80 level underneath has been significant support multiple times, so we are certainly in an area where you would expect some type of bounce. Whether we get that bounce will remain to be seen, but if we get a daily close below the $70 level, I suspect that Solana is in major trouble. At that point, I would become aggressively short not only Solana but probably multiple smaller coins as well. On the other hand, if we can turn around and wipe out the negative candlestick from the Monday session, that might be enough to have money flowing back into this market. Longer-term prospects for Solana look rather interesting, so if you are an investor, you may look at a plunge as an opportunity to pick up more, but if you are a trader this is a very dangerous day, to say the least. Ultimately, we have some decisions to make we will likely make them rather soon. I believe Solana is about to show its hand, and it is our job to follow whatever it tells us to do next. We should have clarity in the next few days.

Expect choppy behavior, but if you are a longer-term trader, this might be a place to start building a position.

Solana has done very little during the trading session on Thursday, as has been the case for the last couple of weeks. We are hanging about the $100 level, an area that would attract a lot of attention. As long as we can find some type of has no real catalyst to get moving, I see this changing anytime soon.

Solana will more than likely need to see some type of external influence to get overly bullish. At this point, I think it is obvious that Solana is going to be waiting for Bitcoin or Ethereum to make up its mind before it will make a move. Solana is playing second fiddle to these markets, despite the fact that it had burst onto the scene so aggressively just a couple of years ago. Nonetheless, the 50 Day EMA above offers a little bit of technical resistance, just as the 200 Day EMA well. With that in mind, I think this is a situation where the market will probably find quite a bit of selling pressure above, so I think it is going anywhere anytime soon. This chart represents what is going on in the entire crypto market right now, nothing.

Whether or not it is consolidation or accumulation remains to be seen, but at this point, it looks like you have got a clear range-bound market that you can deal with, but we are essentially at “fair value.” The bottom of the range is at the $80 level, while the top is at the $120 area. We are right in the middle of it, so unless you have a longer-term outlook on the market, there is absolutely no reason to get involved. While Solana does have a great longer-term outlook to it, I do not necessarily think this is going to be anything more than a potential investment. That is probably true with most cryptocurrencies right now, at least until money starts flowing back into the markets. As a general thought, it appears that there is no real desire to get involved in the crypto markets by most traders, so therefore I think you probably should listen unless you are looking to buy it “on the cheap” and hold onto it until the cycle starts to rally everything out there. Expect choppy behavior, but if you are a longer-term trader, this might be a place to start building a position.