Markets are back in rally mode, and crypto always gives us a good hint as to where things are headed coming into the new week.
Bitcoin, Solana, and friends had a good Saturday session and even repaired some tactical trend damage.
We’ve been discussing various areas of relative strength on our special live streams since last week.
Crypto has been one of them, and the best tokens continue to hold and bounce off key levels.
In fact, I think the potential failed top setups in Ripple and Solana are as good as anything out there right now.
I’m long both for a swing trade and maybe more. We’ll see how things go.
Here is Solana $SOL:
After quickly breaching 120, which has acted as support a good ten times in the past year, SOL just jumped back above this key level and confirmed a bullish momentum divergence.
I’ll be taking profits and reassessing in the 170-180 range.
And here is Ripple $XRP:
Like Solana, Ripple did not register an oversold reading at its recent lows. In fact, it has been one of the most resilient cryptos and has not been oversold since last summer.
This is one of the characteristics I look for most when identifying potential failed top patterns. The best ones don’t get oversold throughout the course of the topping formation.
As long as XRP is above 2, I’m long and watching how price reacts at the 2.50-2.75 range. I have a feeling it could blow right through and make new all-time highs.
Ripple has been the short-term leader in crypto. It rallied almost 600% last winter before transitioning into this multi-month consolidation.
And Solana is the long-term leader in crypto. There hasn’t been a better alt-coin performer in recent history.
I really like these two vehicles to play a big bounce in crypto. And the failed top setups couldn’t be sweeter.
We’ll talk about these charts and more on our live stream Monday. Join us at 9:45AM ET.
