ADA + SOL Downside Potential

ADA/USDT,  4h Bearish

As we await the upcoming news release this week, including FOMC rate hike updates, I wanted to get a couple of these setups out as they are showing a few bearish signs.

ADA’s 4hr uptrend market structure showed some signs of reversal a couple weeks ago and has formed a nice head and shoulders pattern. It is now consolidating under the neckline (resistance). If ADA breaks back above the resistance level shown then the setup is invalidated.

SOL has been respecting recent downtrend market structure extremely well. As well as being supported heavily by the $20 support level. It has now broken down from that level and approaching the market structure trendline again. This could be setting up for more downside for SOL. I would consider this setup invalidated if price is able to hold above $20.5-$21 range.

As always, be cautious trading these setups with market news releases. Tight stop losses will get hit due to volatiltiy.

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