$SOL Analysis: Liquidity Sweep + Order Block Execution (5m Chart)
Today’s trade setup on Solana (SOL) is a textbook example of how to combine Liquidity Sweeps with Order Blocks (OB) for high-concurrency entries on lower timeframes.
🔍 Strategy Breakdown:
The Liquidity Sweep: Market price pushed above the previous swing high to hunt "Buy-Side Liquidity." This move traps breakout buyers and hits the stop losses of early short-sellers before reversing.
Order Block (OB) Identification: After the sweep, a sharp displacement occurred to the downside, leaving behind a clear Bearish Order Block. I waited for the price to return to this zone to trigger the short entry.
Precision Execution: * Entry: Retest of the 5m Order Block.
Risk/Reward (RR): A massive 5.37, which is excellent for scalp/intraday trading.
Targets: Profit-taking is scaled at previous swing lows (Target 1 & 2) with the Final Target set at the major liquidity pool below.
📉 Current Short-Term Outlook for SOL (Jan 6, 2026)
As of right now, SOL is showing signs of localized weakness after failing to sustain above the recent highs.
Bearish Case: If the price remains below the $78.50B market cap level (approx. $138-$140 price zone), we expect a continuation toward the Final Target shown in the chart.
Bullish Case: A reclaim and 15m candle close above the "Liquidity Sweep" high would invalidate this bearish bias and likely lead to a fresh leg up.
Key Level to Watch: Keep an eye on Target 1. If it bounces strongly from here, move Stop Loss to Break Even (BE) immediately.
⚠️ Educational Purpose Only: This analysis is shared for learning purposes and is not financial advice. Always practice strict risk management.
