Solana Trying to Save Itself

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.

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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.