The Solana (SOL) price has finally seen fit to end its parabolic rise of the last couple of weeks. How much more could this crypto gem retrace?
Parabolic move interrupted
It had to end some time. Rising steadily since 12 October, the $SOL price went into more of a parabolic trajectory on 30 October, when three straight days of big green candles ended with a last glorious surge on 1 November, with the price reaching just shy of $47.
The large daily wick left behind on the first day of November told the story of what was then to come. On Thursday the price attempted to rally back, and did manage to claw back to $44.50. Be that as it may, the day closed at around $40, leaving yet another long wick behind.
Source: Trading View
Zooming into the 1-hour time frame one can see a more detailed picture. Wicks aside, the candle bodies for both Wednesday and Thursday both topped at $44.50, thereby drawing an ominous looking M pattern – a measured move for which could take the price back down as far as $35.
From the perspective of the fibonacci retracement for this short term move, the price has already moved through the 0.382 and is currently just short of the 0.618 golden fibonacci level at $37.00. The 0.786 fibonacci is below this at $34.68.
The golden pocket, known as the area between the 0.618 and the 0.786, converges with a long term trendline, plus the bottom of the up-sloping channel that recently contained the price. A bounce could potentially be expected here.
$SOL could make FTX creditors whole
According to a report on Coindesk, if $SOL gets to $50 to $60 this crypto bull market, which would seem a very achievable price, all FTX creditors could be made whole. We have moved a considerably long way since a year ago when FTX collapsed and took down the crypto market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.