Another dip coming?
Solana price bounced back strongly yesterday and formed a daily candle with a massive bottom wick. It is very bullish. It was a great buy the dip moment for spot buyers and intraday traders. However, if you are swing trading with leverage, the momentum is still bearish. I think it is not the time to open a long position for the following reasons:
Weekly:
1) Price is still trending up along EMA 21, but it is starting to drop below it.
2) Momentum indicators are forming negative divergence.
3) MACD and RSI are still in the bull territory, however, Stochastic had tried to move to the bull zone but failed and now moving to the downside in the bear zone.
Daily:
1) Daily MACD and RSI are pointing to the downside and they are about to enter the bear zone.
2) Daily stochastic have reset and moving to the upside, so it is a sign of recovery to the upside, but it is not supported by price action.
3) The price dropped to EMA200 and bounced, but it failed to move about the previous low ($222) and also closed just under EMA 55.
4) Today the price is starting to come down. Today's candle hasn't closed so it is too premature to make any decision on today's candle at this stage.
4H:
1) the current candle failed to close above EMA 21.
2) both MACD and RSI are still in the bear zone.
3). Stochastic has already reached the overbought territory and now it is rolling to the downside.
4) There are two layers of buy blocks below the $190 area so there is a chance the price might drop to that level.
It has been such a volatile and difficult market. Every time you think the bottom is in and the price starts to move up, it gets pushed down. It is the market that challenges you mentally.
Yesterday's dip was a great opportunity to buy spot and hold. But if you are trading, it might be better to buy the strength because dips can keep coming.
Weekly:
1) Price is still trending up along EMA 21, but it is starting to drop below it.
2) Momentum indicators are forming negative divergence.
3) MACD and RSI are still in the bull territory, however, Stochastic had tried to move to the bull zone but failed and now moving to the downside in the bear zone.
Daily:
1) Daily MACD and RSI are pointing to the downside and they are about to enter the bear zone.
2) Daily stochastic have reset and moving to the upside, so it is a sign of recovery to the upside, but it is not supported by price action.
3) The price dropped to EMA200 and bounced, but it failed to move about the previous low ($222) and also closed just under EMA 55.
4) Today the price is starting to come down. Today's candle hasn't closed so it is too premature to make any decision on today's candle at this stage.
4H:
1) the current candle failed to close above EMA 21.
2) both MACD and RSI are still in the bear zone.
3). Stochastic has already reached the overbought territory and now it is rolling to the downside.
4) There are two layers of buy blocks below the $190 area so there is a chance the price might drop to that level.
It has been such a volatile and difficult market. Every time you think the bottom is in and the price starts to move up, it gets pushed down. It is the market that challenges you mentally.
Yesterday's dip was a great opportunity to buy spot and hold. But if you are trading, it might be better to buy the strength because dips can keep coming.
Feragatname
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