The last time $SOL had a capitulative down move like Saturday was June 10, 2023.
Over the next 4 weeks $SOL went from $14 to $32.
Over the next 4 weeks $SOL went from $14 to $32.
I was interviewed years ago for a trading book that never got published, but one of the questions was, “if you could only have one indicator what would it be?”
My answer: Volume.
The key for me at these levels is looking for real buying coming back.
There’s been a buyers strike since late March and massive deleveraging over this past weekend.
We are close, but without a huge amount of volume on a green day eclipsing previous red volume days, the price action is mostly mean reversion and short covering.
Have a look at this chart and the volume. The blue line is the 50 day moving average of volume. We need a huge green volume day for the trend to change from bearish to bullish.
My answer: Volume.
The key for me at these levels is looking for real buying coming back.
There’s been a buyers strike since late March and massive deleveraging over this past weekend.
We are close, but without a huge amount of volume on a green day eclipsing previous red volume days, the price action is mostly mean reversion and short covering.
Have a look at this chart and the volume. The blue line is the 50 day moving average of volume. We need a huge green volume day for the trend to change from bearish to bullish.
$138.48 is the reference close for $SOL on the TD Sequential. If Wednesday closes above it then the countdown begins.
We had a 15 (!) count on $SOL as of Tuesday. That's extremely rare.
I got long on Tuesday for the first time since getting stopped on Saturday.
Small size as the broader structure is still quite bearish.
We had a 15 (!) count on $SOL as of Tuesday. That's extremely rare.
I got long on Tuesday for the first time since getting stopped on Saturday.
Small size as the broader structure is still quite bearish.