⚠️ SOLANA AT CRITICAL LEVEL! 📉 IMMINENT BOUNCE OR CONTINUATION OF THE DROP?
The daily chart of SOL/USDT shows a corrective structure and high selling pressure in the short term, currently trading at 84.89 with a slight drop of -0.14%. After hitting a local high at 98.41, the price has been registering lower highs and is testing a vital technical support zone.
🔍 Trend Analysis and Indicators
Trend: Bearish / Short-term Corrective. The structure shows a clear dominance of the bears after losing the upper consolidation zone, forcing the price to seek liquidity at lower levels.
Moving Averages (MA): Severe institutional resistance. SOL is trading below its three main moving averages. The MA(7) acts as immediate resistance at 85.44, closely followed by the MA(99) at 86.04. Further up, the main wall to break for a bullish shift in structure is the MA(25), located at 88.04.
Bollinger Bands (BOLL): Trading in the lower zone. Being significantly below the middle band (MB) of 88.93, the price dangerously gravitates near the lower band (DN) at 80.89. This behavior reflects a lack of buying volume to facilitate an immediate reversal.
💡 Trading Strategy: Buy or Sell?
Buy?: Entering at the current zone involves high risk due to the strength of the bearish movement. The optimal zones to look for a technical bounce are at the lower Bollinger band (80.89) or, in a scenario of greater capitulation, close to the historical support marked at 76.70. A confirmed bullish entry would require a strong daily close above the MA(99) (86.04).
Sell / Stop Loss?: If the price makes a fake move up towards 85.44 - 86.00 and shows rejection, it could be considered an opportunity to open short positions (Short) targeting 81.00. For those holding buys, the protective Stop Loss must be strict and placed below the floor $SOL .
The daily chart of SOL/USDT shows a corrective structure and high selling pressure in the short term, currently trading at 84.89 with a slight drop of -0.14%. After hitting a local high at 98.41, the price has been registering lower highs and is testing a vital technical support zone.
🔍 Trend Analysis and Indicators
Trend: Bearish / Short-term Corrective. The structure shows a clear dominance of the bears after losing the upper consolidation zone, forcing the price to seek liquidity at lower levels.
Moving Averages (MA): Severe institutional resistance. SOL is trading below its three main moving averages. The MA(7) acts as immediate resistance at 85.44, closely followed by the MA(99) at 86.04. Further up, the main wall to break for a bullish shift in structure is the MA(25), located at 88.04.
Bollinger Bands (BOLL): Trading in the lower zone. Being significantly below the middle band (MB) of 88.93, the price dangerously gravitates near the lower band (DN) at 80.89. This behavior reflects a lack of buying volume to facilitate an immediate reversal.
💡 Trading Strategy: Buy or Sell?
Buy?: Entering at the current zone involves high risk due to the strength of the bearish movement. The optimal zones to look for a technical bounce are at the lower Bollinger band (80.89) or, in a scenario of greater capitulation, close to the historical support marked at 76.70. A confirmed bullish entry would require a strong daily close above the MA(99) (86.04).
Sell / Stop Loss?: If the price makes a fake move up towards 85.44 - 86.00 and shows rejection, it could be considered an opportunity to open short positions (Short) targeting 81.00. For those holding buys, the protective Stop Loss must be strict and placed below the floor $SOL .