Technical analysis by TheGemHunter about Symbol SOL on 5/16/2025

SOL has recovered nicely after it's 67% loss, and is one of the strongest large cap coins this run up. It's currently right below the 0:0.618 of the previous wave down and forming a broadening wedge on a smaller time frame. So, the question arises...is this a true recovery or is it a dead cat? It can be challenging to discern the difference, but there could be clues that strengthen the TA. 1) The broadening wedge (Which could morph into a diamond top) below the 0.618 is suspicious. On the 1day chart it is getting rejected by the 200 SMA and RSI bearish divergence is starting to show. 2) Volume has been decreasing since the beginning of the recovery. 3) There is a potential doji candle in the making on the 1W time frame, with 2days and 8 hours until closed. 4) USDT.D came short of a LTF 1:1 3 wave correction, so there is a chance that it could come back and try to reach that target. It is printing a potential doji on the 0:0.618 retracement with increased buying volume. To void the dead cat, we would have to see a higher or equal low of retracement to the downside if this is a wave top. Or at least a 0.85 retracement to the upside if price continues up. So, this could be wave X of a WXY correctional pattern. On a larger time frame it appears the ABC pattern is complete, but could form a deeper C wave bottom. If the dead cat does bounce, how far could price continue downwards? There is a strong ratio band of support, the 1:2.272 on higher TF (around 67.00). This TA is not meant to scare, nor is it recommended to take action in re-organizing your assets. It is intended for educational purposes only. Calling a dead cat is a gutsy move, so often, most of those calls don't always play out. But analyzing real time price action and historical data is all we can do to help determine those potential moves. I will try my best to keep this publish updated, and provide potential clues. So, when you do see other traders provide constant updates, please hit the BOOST button, as this requires a lot of dedication and time, and it shows that they care. Key Take Away: Look for higher local highs to the 0.85 to void the dead cat, or a higher/equal low.Thanks, and Good Luck! - Not Financial Advice -