Solana (SOL) - The Grind Continues...

It seems to trade within an endless range. But for how much longer? It's done with both sides of the market as sentiment goes to emotional extremes near breakout points, but it's usually a late signal when it comes to having a directional bias. The chart has left the bulls empty handed at $188 and fooled the bears at $122. The next move will likely dictate the direction of the market in the coming months. 

Let's get back to the technical side of things:

The daily looks decent, even after removing market participants on both sides. The most important thing to note here is that it is back inside the range. 

• Today's high marks a pivotal area to move towards $170.
• If it decides to retest $135, I would look for a long position in that area towards $150.

Note that the price should be stagnant for the next few weeks and will likely last until the next Employment Situation Report on September 6. 

Against BTC

The chart is screaming for a bullish continuation signal for the next month. 

One should consider that this move will be much smaller than the recent 2023 expansion it just had. So targeting a 50% move against bitcoin is feasible.

It needs to hold above the yearly open for the rest of August for a breakout opportunity, as it has also kept all swing lows intact to date and should continue to do so. 

This chart paints a very good macro outlook if we look at the monthly. You can enter with more confidence if it recovers 0.0026 and be a little more relaxed when it comes to holding.

Against ETH

It continues to show strength and should hold above the breaker block shown on the chart. The only sign of concern is the inability to close above 0.058 and is something to keep in mind in case that was the high against Ethereum. 

Small bids around 0.050 - 0.052 in case momentum continues to favor solana over ethereum. Invalidation below 0.049

A move back above 0.058 invalidates the current bearish deviation and triggers a nice trade setup with clear skies on price discovery. 

I still see Solana as a major player in L1s and believe it is the safest bet in current market conditions. With the most recent move, I expect it to be a slower August than anticipated as it failed to trigger a bullish signal above $200. Bid smaller amounts until bullish triggers are activated at the macro level.