Solana under potential threat of a reset, according to the statement?
In the cryptocurrency market, Solana has been making waves recently. However, there are signs that suggest a potential pullback before a long-term bullish confirmation.
The current market structure for Solana indicates a possible correction, as the 4-hour chart shows a potential M-pattern formation. This bearish chart formation could be a result of the price of Solana failing to surpass its recent high. If this pattern continues, Solana could initiate another correction.
The RSI for Solana is approaching overbought territory, further supporting the idea of a pullback. A cool-off period would be beneficial for Solana, as it would help bring the indicators back to a more balanced state.
The liquidation of short positions and the dominance of long positions are indicative of market confidence in Solana. However, this dominance also increases the likelihood of another pullback before a bullish structure is confirmed in the long term. This temporary market top could be a sign that Solana is due for a correction.
The visible long delta in the Solana market suggests a potential increase in long positions. The current Solana price range is dominated by these long positions, which could lead to a shift in market sentiment.
It's important to note that the liquidation of short positions above the current Solana price level is nearly complete. This could be a sign of market optimism for Solana, but it also indicates that there may not be many bears left to push the price down.
A retest of the support zone for Solana could help maintain its structure of higher lows and higher highs that has been established since April. A clear dominance of long positions is visible in the current Solana price range, which could support this retest.
However, if Solana continues to rise without consolidation, it could become overbought near its all-time high. This could potentially lead to a correction near the $230 price level, where Solana has previously faced strong selling pressure on the daily chart.
On a positive note, the MACD for Solana indicates decreasing positive momentum, which could be a sign that the current bull run may be slowing down. This could provide an opportunity for investors to enter the market before the potential pullback.
In conclusion, while the current market structure for Solana suggests a potential pullback, the dominance of long positions indicates market confidence in the cryptocurrency. Investors should closely monitor the market for signs of a retest of the support zone and potential correction before making any investment decisions.
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