solana:HgcxVs6kJhPAaGqnPNGaa7zYgNT49hJrLufiqcNMuYZT (Update)
CA: HgcxVs6kJhPAaGqnPNGaa7zYgNT49hJrLufiqcNMuYZT
Disclosure: I have added to my position since the previous post.
Further decline took us past the green Fair Value Gap and as mentioned in the previous update we would then have been targeting the upper half of the Demand Wick highlighted red.
We found some support there but were then rejected at the descending resistance line. Price has declined further into the red Demand Wick, where we look to be finding some support past the 90% retracement level of Wave 1. We are currently trying to break back out of this area, as well as trying to push through the Daily R1 and the Point of Control, so it would not be surprising to find some resistance in this area.
If we clear this confluence of resistances, we will then need to clear the descending resistance line, followed by the Weekly Pivot. Breaking out and holding above these levels would be a good sign that the low is in, and breaking out above the swing high at $9m would add confidence to the count.
If the current count is correct, Wave 3 should target a minimum of $25.8m, before a Wave 4 pullback to around $16.4m and then a Wave 5 push upto around $31.7m.
solana:HgcxVs6kJhPAaGqnPNGaa7zYgNT49hJrLufiqcNMuYZT (Update)
CA: HgcxVs6kJhPAaGqnPNGaa7zYgNT49hJrLufiqcNMuYZT
Disclosure: I have added to my position since the previous post.
The Wave 2 decline continued to the mid-point of the 1H Fair Value Gap highlighted green, between the 78.6% and 85.4% retracement levels of Wave 1, where it looks to have found support. If the Wave 2 decline continues, I would look to find support at the Daily S1, followed by the upper half of the 1H Demand Structure highlighted red.
For the time being, we have printed 1H bullish divergence at the low, with a spike of volume. We have also just broken through a descending resistance line with good volume.
We are back inside the 1H Demand Structure highlighted blue, which we need to break back out of to signal that we have likely bottomed.
Doing so would send us back above the Daily Pivot and get us close to the Point of Control.
Getting through the Point of Control and then the Weekly Pivot, and finally through the Wave b high would be highly constructive and would make it much more likely than not that the bottom is in.
If the current count is correct, Wave 3 should target a minimum of $27.1m, before a Wave 4 pullback to around $17.7m and then a Wave 5 push upto around $32.9m.
Breaking out above Wave b at $9.0m will add confidence to the count.