Crypto analyst Jhon Isige says Solana (SOL) has returned to its optimal buying level after a cumulative weekly loss of 14.40%. Analyst Filip L., on the other hand, expects Dogecoin (DOGE) bearish moves to retrace from Friday to the end of the week. We compiled Jhon Isige and Filip L’s analysis of two altcoin projects for our readers.
“Solana price is on the threshold and creates recovery momentum”
Solana is embracing the return of stability just days after the cryptocurrency market fell. Leading crypto Bitcoin dropped below $20,000 on Friday. Thus, it took the entire market down with it. SOL price also declined from support at $36.50. Also, it almost cleared the buyer congestion at $30.00. However, the bullish outlook comes into play again as Solana price is expected to make a stronger comeback.
Solana price hit oversold conditions as it last dropped to $30.00. This saw further capitulations as weaker individuals rushed to protect their capital. A combination of these two factors means recovery of SOL is imminent. In other words, as the Stochastic RSI rises from the oversold zone, the SOL will reach higher highs such as $38.50 and $48.50.
LEFT eight hour chart“Potential wedge pattern is likely to lead to a rally for the altcoin”
A falling wedge pattern forming on the eight-hour chart is likely to be the SOL’s ticket out of its stubborn bearish shackles. This pattern develops during a sharp or prolonged decline where two trendlines are drawn, touching lows and lower highs of the asset. Consolidation takes place at the top of the wedge before a significant breakout.
Traders should wait for Solana to confirm the move above the upper trendline before heading to $38.50 for the 26% move. Falling wedges are highly bullish patterns that usually mark a transition from a downtrend to an uptrend. Therefore, a rise of the SOL to $38.50 is likely to set the ground for a rally to $48.50.
Despite the bullish outlook above, investors do not seem convinced that Solana price is ready to move down and take off from the podium. Santiment’s on-chain Positive Sentiment metric reveals that investor sentiment continues to decline three weeks after peaking at 2,802. Perhaps a catalyst from the ecosystem is possible to rekindle interest in the altcoin project. This, in turn, is likely to reinvigorate the altcoin price with enough momentum to climb the ladder.
Solana positive emotionThe run, which is expected to go up to $38.50, could be stopped by several seller congestion zones at $34.50 and $36.50. If altcoin price lacks the extra support to break the stated resistance, it will likely settle and consolidate in the narrow range between $30.00 and $34.00.
“Dogecoin bulls are jumping out the door”
Dogecoin (DOGE) sees the bulls shift into gear again as the dust settles in the wake of Jackson Hole. Investors are returning and trading with lucrative discounts. Investors are looking beyond comments from Powell. So it’s starting to fend off negative news that should see a spike in risky assets towards the end of the week.
Dogecoin was giving investors headaches over the weekend, as it did on Saturday. Altcoin price action has not gone anywhere. On Sunday, ASIA PAC traders pushed DOGE down. As is often seen, it is possible for these markets to be very flexible. This week seems to be no exception as the US session has seen overall rebounds. In this spirit, the altcoin price is likely to gain ground towards the end of this week.
DOGE was initially set to clear about 5% of losses reserved over the weekend. Bulls that rise above Saturday’s high will jump on this occasion. Thus, he will add more to his positions. This will trigger a shortage in purchasing volume. As such, Dogecoin will see higher prices being paid to get some share in the price action. To be part of the uptrend, the bulls will likely push DOGE price up to $0.0700 with the monthly pivot and the 55-day Simple Moving Average retraced by a violent recovery.
DOGE daily chartDownside risk comes from the two price caps from the monthly pivot around $0.068. Also, there is the 55-day SMA located above. This means that the two elements could hold a bearish flag in the immediate vicinity. It also means that the price action creates a rejection that will cause a drop to $0.0600. From there, the risk could be that the markets roll and fall again. DOGE is likely to drop roughly 23% to $0.048 during this period.
