Solana (SOL/USDT) Technical Analysis: Critical Levels and Potent
In this analysis of Solana (SOL/USDT), we dive into the key market structure and Fibonacci retracement levels that could guide the next price movements. The 4-hour timeframe reveals a corrective wave structure with crucial levels to watch, offering an excellent setup for both short-term and long-term traders.
Key Insights:
Retracement Zone Resistance (202.17–208.50 USDT):
The price is currently approaching a significant resistance zone between the 50% (202.17) and 61.8% (208.50) Fibonacci retracement levels of the previous wave.
This area could act as a reversal point, triggering either a continuation to the downside or a breakout to higher levels.
Bullish Scenario:
If the price breaks above the 208.50 USDT resistance, we could see a bullish continuation toward 230 USDT or higher. This move would indicate strong momentum and buyer dominance.
Bearish Scenario and Key Support Zone (160.00–165.30 USDT):
A rejection from the resistance zone could push the price downward toward the highlighted support zone around 160.00–165.30 USDT. This area aligns with key market structure and presents a potential accumulation zone for long positions.
Momentum Indicators:
The stochastic oscillator is currently in the overbought territory, suggesting that a correction or pullback could be imminent. However, confirmation from price action is essential.
Strategy Suggestions for Traders:
Aggressive Traders: Watch for rejection signals in the 202.17–208.50 USDT resistance zone to initiate short positions, targeting the 160.00–165.30 USDT support area.
Conservative Traders: Wait for a clear breakout above 208.50 USDT or a bounce from the 160.00–165.30 USDT support zone to enter long positions with reduced risk.
Key Insights:
Retracement Zone Resistance (202.17–208.50 USDT):
The price is currently approaching a significant resistance zone between the 50% (202.17) and 61.8% (208.50) Fibonacci retracement levels of the previous wave.
This area could act as a reversal point, triggering either a continuation to the downside or a breakout to higher levels.
Bullish Scenario:
If the price breaks above the 208.50 USDT resistance, we could see a bullish continuation toward 230 USDT or higher. This move would indicate strong momentum and buyer dominance.
Bearish Scenario and Key Support Zone (160.00–165.30 USDT):
A rejection from the resistance zone could push the price downward toward the highlighted support zone around 160.00–165.30 USDT. This area aligns with key market structure and presents a potential accumulation zone for long positions.
Momentum Indicators:
The stochastic oscillator is currently in the overbought territory, suggesting that a correction or pullback could be imminent. However, confirmation from price action is essential.
Strategy Suggestions for Traders:
Aggressive Traders: Watch for rejection signals in the 202.17–208.50 USDT resistance zone to initiate short positions, targeting the 160.00–165.30 USDT support area.
Conservative Traders: Wait for a clear breakout above 208.50 USDT or a bounce from the 160.00–165.30 USDT support zone to enter long positions with reduced risk.
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Given the price consolidation above $209, further growth for Solana should be considered.
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.