Important News on January 24:
- CZ retweeted a step-by-step guide for issuing a TRUMP Meme coin on the BNB Chain
- SOL surged past $260
- Vitalik published an article discussing Ethereum L1 and L2 scaling strategies
- Bloomberg: The crypto industry views Trump's executive order as a fast track to friendly regulatory rules
- The Bank of Japan raised interest rates by 25 basis points
Conveying the path of trading, enjoying a wise life.
Yesterday, a giant whale made another move, purchasing SOL, extracting 63.8K SOL once again, bringing its total holdings to 210,000 coins, with a total value of $51.4 million.
It is said that after the last time Trump issued the MEMECoin, SOL experienced a significant surge, reaching nearly $300. Currently, it is in a retracement phase, and whales are starting to accumulate chips again. From a technical perspective, is the whale's holding cost at $256 really high? Let's discuss this topic today.
From a technical standpoint, SOL's current price is $250. On the weekly chart, we can see an issue; after SOL reached a new high some time ago, it has been retracing. During the retracement, it coincidentally touched the trend line, which is also the high point of the previously broken converging triangle.
After reaching this high point, the retracement also coincided with the middle band of the Bollinger Bands on the weekly chart. After several weeks of sideways oscillation, a strong upward rebound occurred.
The last time SOL retraced to the middle band of the Bollinger Bands was also a retracement action after a breakout. After a 67% increase last week, it began to pull back. We know that for SOL, what we focus on is the $222 level, which is a key support level for us. If it can retrace to this level, it would still be an excellent opportunity for us to enter.
So why is this level considered an important support level? At the same time, it is also a retracement action after a double bottom breakout. This position is very close to the middle band of the daily Bollinger Bands, including the neckline.
To summarize, if SOL retraces to $220, we can enter again. If we want to be broader, we can consider re-entering SOL in batches at the $200 - $230 range.
The market formed a doji yesterday, quickly rising to $106,000 due to brief positive news, but it ended with a doji, indicating significant selling pressure above, as the volume was relatively large, leading to considerable selling pressure above, while there is also support below, resulting in a divergence between bulls and bears.
As for Bitcoin's price, I believe it will still decline before the end of the month. The first test point for the decline is at $99,000, which is the middle band of the daily Bollinger Bands, and it is also the middle band of the 3-day Bollinger Bands, as well as the neckline of the double bottom structure. Therefore, Bitcoin's price at $99,000 is considered an entry point.
If it goes further down, it will reach $91,500, where I still think it can be entered, but it must not break below $90,000, because breaking below $90,000 could form a double top. The formation of a double top must be based on breaking the major neckline.
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