SOL creates potential 123 bottom formation within the correction, but it has not been confirmed yet and the price is heading for a lower minimum. If we want to think about reversal, so the price must create not only rising lows but also highs. However, it is not succeeding, and therefore the price may still continue to correct in the short term.
As we can see in the picture, the price has not moved much since point 3 upwards and it falls again. If we don’t keep point 3, we will look for a new minimum, which must be created at least at the value of point 1, which represents $ 186. If the price breaks even this minimum, the correction continues and this pattern is definitely invalid.
SOL has been bullish for a long time
However, if the price could be created minimum higher than $ 186, so the reverse 123 bottom formation pattern is still in play. Even so, confirmation of the growing trend will occur only when the price exceeds the last maximum at $ 236. At that moment, the price would also create rising highs and a long-term reverse pattern.
In the short term, we are bearish, but as we can see, the $ 186 support zone is close to the market price. That’s why we will monitor the position of the next minimum, which can be crucial in formation end of the correction structure.