Solana (SOL) has been on a wild ride, recently revisiting its all-time high. But don't break out the champagne just yet! A critical resistance level has emerged around $240, acting as a major roadblock to further gains.
Here's the breakdown:
$240 Resistance: This price point is a significant hurdle. Multiple attempts to break through have been rejected, indicating strong selling pressure. A decisive daily close above $240 is crucial for a renewed bull run.
Downtrend Potential: Until that breakout happens, SOL appears to be in a downtrend. Expect continued downward pressure, with a potential target of $180. This area could provide strong support, setting the stage for a potential bounce.
Trade Idea:
Long Oppurtunity: Wait for a confirmed daily close above $240 before entering long positions. Target the previous all-time high and beyond.
Short Opportunity: The current technical structure presents a compelling shorting opportunity for traders with an appropriate risk appetite. Entry points could be considered at the current price or on any failed attempts to break above $240. A prudent stop-loss would be placed above the $240 resistance level, while a price target of $180 is reasonable.
Key Indicators to Watch:
Daily Close: Pay close attention to the daily closing price. A close above $240 is the bullish signal we're looking for.
Volume: Increased volume on a breakout above $240 would add conviction to the move.
RSI: Monitor the Relative Strength Index for signs of bullish divergence, which could foreshadow a price reversal.
Disclaimer: This is not financial advice. Always do your own research and manage your risk accordingly.
Here's the breakdown:
$240 Resistance: This price point is a significant hurdle. Multiple attempts to break through have been rejected, indicating strong selling pressure. A decisive daily close above $240 is crucial for a renewed bull run.
Downtrend Potential: Until that breakout happens, SOL appears to be in a downtrend. Expect continued downward pressure, with a potential target of $180. This area could provide strong support, setting the stage for a potential bounce.
Trade Idea:
Long Oppurtunity: Wait for a confirmed daily close above $240 before entering long positions. Target the previous all-time high and beyond.
Short Opportunity: The current technical structure presents a compelling shorting opportunity for traders with an appropriate risk appetite. Entry points could be considered at the current price or on any failed attempts to break above $240. A prudent stop-loss would be placed above the $240 resistance level, while a price target of $180 is reasonable.
Key Indicators to Watch:
Daily Close: Pay close attention to the daily closing price. A close above $240 is the bullish signal we're looking for.
Volume: Increased volume on a breakout above $240 would add conviction to the move.
RSI: Monitor the Relative Strength Index for signs of bullish divergence, which could foreshadow a price reversal.
Disclaimer: This is not financial advice. Always do your own research and manage your risk accordingly.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.