SOL Potential Moves - In depth Technicals Explanation/Education!
Hello Dear Traders, and Investors,
On today's analysis, CryptoQueens will provide you an overview of SOL crucial's resistances and supports as well as where it might be headed, but more importantly, we will explain thoroughly every financial term such as Bearish Orderblock and Fair Value Gap, and how they can impact price behavior.
So without further re-do, let's get to it.
First of all, after price broke above, the previous resistance at 17.34$, within 8hours price tested the FVG area, as expected, where it stopped the bullish momentum at the time being.
FVG: Fair Value Gaps are most commonly used amongst price action traders and are defined as instances in which there are inefficiencies, or imbalances, in the market. FVGs acts as magnets and must be filled eventually. The bigger the gap the bigger the importance.
Moreover, it is important to mention that volume increased significantly, indicating us, huge buying power.
At that point, for any uptrend to be considered healthy, there must be some period of consolidation, otherwise we use the term "What goes up instantly, must go down" and is most likely considered manipulation or market making. Therefore, in order for any price continuation to the above levels, price need to consolidate around this area, indicating us accumulation.
In the instance, that price manage to breakout to the upside, next small FVG is located in the highlighted area between 33.25$ - 33.71$. As we mentioned above, the biggest the gap the bigger the importance. Hence, considering that much buying volume, and the minor importance of this particular Fair Value Gap, there is a potential price continuation to the above.
Finally considering its bullish momentum, and the above-mentioned scenario, price will test the area between 36.45$ - 37.30$, where the Bearish Orderblock is located.
Bearish Orderblock: A bullish bar or candle is formed before a downward move takes place. It results in breaking the structure and making a new low or lower low. Such a structure is anticipated to render resistance to the price.
Bearish order blocks represent the zones that indicates the presence of chunk of sell orders of institutional traders and banks
They emerge in an uptrend and signify a trend reversal. Price stayed in an uptrend for a while, and now it is reversing due to high market makers orders.
Subsequently, after filling all the liquidity from above, there is a huge potential for price reversal to occur, leading to the support areas highlighted in the chart.
However, on the other hand, liquidity can be collected form the below support areas in the chart, and then move to the upside in order to grab all the liquidity as well.
SIDE NOTE: In both occasions, high percentage of Stop Losses, Margin calls and Liquidations are expected to occur!
DISCLAIMER: This analysis is not intended to encourage any buying or selling activity of any particular securities. In addition, it should not be considered as ground for taking any trade action. Hence, your own diligence is highly recommended before entering any trade.
If you liked it, make sure to support with a like, follow and a comment!
Best Regards, CryptoQueens.
On today's analysis, CryptoQueens will provide you an overview of SOL crucial's resistances and supports as well as where it might be headed, but more importantly, we will explain thoroughly every financial term such as Bearish Orderblock and Fair Value Gap, and how they can impact price behavior.
So without further re-do, let's get to it.
First of all, after price broke above, the previous resistance at 17.34$, within 8hours price tested the FVG area, as expected, where it stopped the bullish momentum at the time being.
FVG: Fair Value Gaps are most commonly used amongst price action traders and are defined as instances in which there are inefficiencies, or imbalances, in the market. FVGs acts as magnets and must be filled eventually. The bigger the gap the bigger the importance.
Moreover, it is important to mention that volume increased significantly, indicating us, huge buying power.
At that point, for any uptrend to be considered healthy, there must be some period of consolidation, otherwise we use the term "What goes up instantly, must go down" and is most likely considered manipulation or market making. Therefore, in order for any price continuation to the above levels, price need to consolidate around this area, indicating us accumulation.
In the instance, that price manage to breakout to the upside, next small FVG is located in the highlighted area between 33.25$ - 33.71$. As we mentioned above, the biggest the gap the bigger the importance. Hence, considering that much buying volume, and the minor importance of this particular Fair Value Gap, there is a potential price continuation to the above.
Finally considering its bullish momentum, and the above-mentioned scenario, price will test the area between 36.45$ - 37.30$, where the Bearish Orderblock is located.
Bearish Orderblock: A bullish bar or candle is formed before a downward move takes place. It results in breaking the structure and making a new low or lower low. Such a structure is anticipated to render resistance to the price.
Bearish order blocks represent the zones that indicates the presence of chunk of sell orders of institutional traders and banks
They emerge in an uptrend and signify a trend reversal. Price stayed in an uptrend for a while, and now it is reversing due to high market makers orders.
Subsequently, after filling all the liquidity from above, there is a huge potential for price reversal to occur, leading to the support areas highlighted in the chart.
However, on the other hand, liquidity can be collected form the below support areas in the chart, and then move to the upside in order to grab all the liquidity as well.
SIDE NOTE: In both occasions, high percentage of Stop Losses, Margin calls and Liquidations are expected to occur!
DISCLAIMER: This analysis is not intended to encourage any buying or selling activity of any particular securities. In addition, it should not be considered as ground for taking any trade action. Hence, your own diligence is highly recommended before entering any trade.
If you liked it, make sure to support with a like, follow and a comment!
Best Regards, CryptoQueens.
Penafian
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