Can the Solana ecosystem token follow SOL steps to achieve a new ATH?
Solana (SOL) is moving along a parabolic ascending support line, reaching an all-time high on September 9th.
Serum (SRM) hit a new all-time high on September 11th. Although it has since fallen, it recently bounced off the USD 10 support area.
Chainlink (LINK) is trading above the USD 24.80 support area where it broke out on Nov.
SOL has been rising along with a parabolic ascending support line since July 20th. The rate of surge accelerated on August 26 after the token confirmed the previous all-time high as support.
The upward move eventually led to an all-time high of $ 216, which was hit on September 9th.
The token created a shooting star candle (red symbol) and has been moving down since then.
It is currently trading just above the USD 150 support area, which also coincides with the parabolic ascending support line.
The technical indicators are gradually turning into a downtrend. The RSI and MACD are both bearish, with the RSI falling below 70.
A break in the support line can trigger a very strong pullback.
ATOM / USDT daily chart | Source: TradingView
The shorter-term 2-hour chart is showing the decline as a five-wave structure shaped like a descending wedge. Hence, it could be a starting crossover.
If so, the SOL could bounce back towards the 0.5-0.618 Fib resistance before falling again.
ATOM / USDT 2-hour chart | Source: TradingView
- SOL moves along a parabolically ascending support line.
- It hit an all-time high on September 9th.
Similar to the SOL, the SRM has been rising along with the parabolically ascending support line since July 20th. On September 9, it broke the USD 10 resistance area and hit a new all-time high of USD 13.72 for the next two days.
Although the price has fallen since then, it confirmed the $ 10 area as support. At the same time he touched the parabolic ascending support line (green symbol) again.
The technical indicators are rising but showing no strength. MACD is in positive territory but has a neutral slope. Likewise, the RSI is above 50 but is declining slightly.
However, the trend can be viewed as bullish as long as the token is trading above the $ 10 area and the parabolic support line.
Daily SRM / USDT chart | Source: TradingView
Although unconfirmed, it is possible that the move has been a 1-2 / 1-2 wave formation since July 20th.
If so, it could push SRM to a new all-time high, potentially reaching $ 30.
Therefore, it is likely that the SRM will initiate a significant upward move, similar to the SOL.
However, a decline below the second wave low of $ 7.21 (red line) invalidates this possibility. In addition, a close below the parabolic ascending support line outlined above would reduce the likelihood.
Daily SRM / USDT chart | Source: TradingView
- SRM moves along a parabolically ascending support line.
- It is trading above the support at $ 10.
LINK has been on the rise since July 20th. It hit a high of $ 36.31 on September 6, but fell sharply thereafter.
The next day, the price confirmed the USD 24.80 area as support, creating a long wick (green symbol) underneath. This area is the 0.5 fib retracement support and the horizontal support.
Technical indicators are relatively neutral. The MACD falls on a very neutral slope and the RSI is right on the 50 line.
If there is a breakdown, the next support is at $ 22.10, 0.618 fib retracement support.
LINK / USDT daily chart | Source: TradingView
The shorter-term 2-hour chart suggests the possibility of a breakdown.
LINK has been trading on an ascending parallel channel since its boom on September 7th. Such channels often contain corrective structures.
It is currently trading near the resistance line of the channel, which also coincides with the 0.618 fib retracement resistance.
In addition, a bearish divergence is forming in both the RSI and the MACD.
Therefore, if LINK fails to close above the channel’s resistance line, a collapse seems the most likely scenario.
LINK / USDT 2-hour chart | Source: TradingView
- LINK is trading above the USD 24.80 support area.
- It acts within a short-term ascending parallel channel.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto