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Should You Buy Solana? What the Charts Say

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

Solana just cracked the top ten biggest cryptocurrencies with a market cap of just under $21 billion. The rumored Ethereum rival is up 235% in the past month alone after a steep ascent from $22.11 to as high as $75 so far today. Does this mean it is time to join the bulls and invest your hard-earned dollars into Solana? After seeing the Elliott Wave chart below, we remain skeptical.

Solana to Complete Elliott Wave Impulse

Solana ‘s daily logarithmic chart reveals a five-wave impulse, whose fifth and final wave is now unfolding. The pattern is labeled (1)-(2)-(3)-(4)-(5), where the five sub-waves of wave (3) are visible, as well. Wave (2) was a sharp retracement from nearly $5 to barely above $1. Wave (4), on the other hand, was a sideways triangle correction, marked a-b-c-d-e.

This, in turn, means the recent surge to new records must be wave (5). Unfortunately for the bulls, the theory states that a three-wave correction follows every impulse. If the count above is correct, we can expect a notable bearish reversal once wave (5) is over. Of course, calling the top is outside the scope of this article. Solana might actually reach the $100 mark before the bears return.

The point is that corrections usually erase the entire fifth wave. Here, this translates into a decline back to the support of wave (4) near $20 or lower. In our opinion, the risk/reward ratio is not at all attractive and we’d rather observe Solana from a safe distance.

What will BTCUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



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