$SOL Long/Short Set-up

Market Context:

Trend: The chart shows a clear short-term downtrend. The price is consistently making lower highs and lower lows.

Moving Averages: The price is trading below the MA(7), MA(25), and MA(99). The MA(99) (purple line) is acting as a heavy overhead resistance around $85.70.

RSI(6): Currently at 34.91, which is approaching the "oversold" zone (30). This suggests that while the momentum is bearish, a small "relief bounce" might be coming soon, but the overall trend remains down.

Option 1: Short Setup (Trend Following)

This is the higher probability trade since it follows the current momentum.

Entry: Wait for a small bounce to the MA(25) area around $84.10 - $84.50.

Target (TP): $82.00 (Recent psychological support and 24h low area).

Stop Loss (SL): $85.50 (Just above the recent local high and MA99).

Option 2: Long Setup (Mean Reversion)

This is a riskier "counter-trend" trade, betting on a bounce from the oversold RSI.

Entry: Only if the price holds the current support at $83.00 and shows a bullish reversal candle (like a hammer).

Target (TP): $85.00 (Testing the MA25 and previous breakdown point).

Stop Loss (SL): $82.50 (Below the recent low of $82.98).

Summary Advice

The chart looks Bearish. Shorting the "relief bounces" (when the price touches the yellow or pink lines and fails) is currently safer than trying to catch the bottom.

Important: Always check the 24h volume. If volume increases while the price drops, it confirms the downtrend. If volume dries up, a reversal might be near.

it's not a Financial advice ( DYOR)

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