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🚀 SOL at a Critical Juncture: Breakout Above Descending Trendline Could Signal Wave-(3) Launch
✦ 1. Price Action Nears Key Technical Barrier
The price of SOL$SOL is steadily approaching its descending trendline, a major technical resistance that has guided price movement in recent weeks. This zone will be pivotal in determining the next market direction.
✦ 2. Breakout Confirmation as the First Signal
A confirmed breakout above the descending trendline would serve as the initial indication that wave-(3) of the current Elliott Wave structure is beginning its upward move, potentially unlocking strong bullish momentum.
✦ 3. Wave-(3) – The Power Wave
In Elliott Wave theory, wave-(3) is typically the most aggressive and extended bullish phase, often accompanied by high volume and increased market participation, making this a phase of significant trading opportunity.
✦ 4. Volume & Momentum Indicators to Watch
For confirmation, traders should closely monitor volume spikes, RSI breakout signals, and MACD bullish crossovers. These will help validate whether the breakout is sustainable or a false move.
✦ 5. Potential Price Targets Post-Breakout
If wave-(3) gains traction, potential targets could include recent swing highs and Fibonacci extension levels, with the possibility of SOL retesting psychological resistance zones.
✦ 6. Risk Management Remains Essential
While breakout trades can be lucrative, false breakouts are common. A prudent approach involves stop-loss placement below recent swing lows to manage downside risk effectively.
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