Solana (SOL) is currently trading near 142 USDT after completing a prolonged corrective phase from the 240–260 USDT highs. The chart shows a clear downtrend exhaustion, followed by a stabilization range and early signs of recovery.
Recent price action suggests that selling pressure has weakened, while buyers are gradually defending higher lows. This places SOL in a transition zone, where structured trades offer better odds than aggressive directional bets.
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Key Technical Observations
1. Market Structure
Previous macro structure was *lower highs and lower lows**
Current structure shows *range compression** with higher reaction lows
* Momentum is neutral-to-slightly bullish on the 4H timeframe
This indicates accumulation behavior, not continuation of the strong bearish trend.
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2. Support & Resistance Levels
Major Support Zone:
*120 – 125 USDT**
This zone has been tested multiple times and continues to attract buyers, confirming it as a strong demand area.
Intermediate Support:
*135 – 138 USDT**
Short-term support holding current price structure.
Key Resistance:
*155 – 160 USDT**
Break above this zone would signal a structural shift.
Major Resistance:
*180 – 200 USDT**
Former distribution range and high-liquidity supply zone.
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Trade Setups
Primary Long Setup (Pullback-Based)
*Entry Zone:** 135 – 140 USDT
*Stop Loss:** Below 125 USDT
*Take Profit 1:** 155 USDT
*Take Profit 2:** 175 – 180 USDT
*Risk-to-Reward:** ~1:2.5 to 1:3
This setup favors patient entries near support, not chasing breakouts.
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Breakout Confirmation Setup
For momentum traders only:
*Buy on 4H close above:** 160 USDT
*Stop Loss:** 148 USDT
*Target Zone:** 180 – 200 USDT
A breakout must be supported by volume expansion to be valid.
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Bearish Invalidation
4H close below *120 USDT**
* Strong bearish volume returning
* Failure to hold higher lows
If invalidated, SOL may revisit deeper demand zones before any sustainable recovery.
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Risk Management Guidance
Risk *1–2% maximum** per position
* Avoid over-leverage due to SOL volatility
* Scale profits at resistance, not at arbitrary price levels
Professional traders focus on execution quality, not predictions.
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Analyst Summary
SOL is no longer in freefall and has entered a base-building phase. While a full trend reversal is not yet confirmed, the chart offers structured long opportunities with defined risk. Confirmation and patience remain key.
📌 This is a market for planning and positioning, not emotional trading.
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