Solana is one of the up-and-coming cryptocurrencies, but it is worth noting that money is going to flow from the bigger crypto markets to the smaller ones such as this one. The candlestick is a bullish formation, as it forms a little bit of a hammer, just as we had seen from a couple of days ago. With that in mind, it is probably worth noting that the markets will continue to be very volatile, but perhaps we are getting close to a bottom in this pair.
At the $120 region, we have a significant amount of previous resistance, and any rally at this point in time will be forced to pay close attention to that. Overcoming that level would of course be very bullish, especially as we have the “death cross” forming right in that same region. It is a bit early to call this a market that is ready to go straight up in the air, but if we were to break above all of that, it will have completed a “W pattern” which is a very bullish sign. In that scenario, the market will more than likely go looking towards the $155 level.
Keep in mind that Solana has a lot of ties to Ethereum, so we will certainly need to see Ethereum take off as well. One of the things that cryptocurrency traders have not taken into account most of the time is that Bitcoin has a 90% negative correlation to the VIX, meaning that as the VIX rises, crypto falls. In other words, it is yet another tool in your toolbox to pay close attention to. In other words, when there is a lot of “risk-off sentiment”, money simply does not go looking towards areas like Solana or other smaller coins. Bitcoin gets dumped as well, so there is almost no way that Solana will rally unless there is some specific news coming out about the Solana ecosystem. I do think that we are due for a bounce though, so because of this, it is likely that we will see a short-term attempt to gain at this point.
