$SOL /USDT – Bearish Breakdown: Short Trade Setup

Current Market Overview:

Solana (SOL) has recently broken below the key $185 support level, touching a new intraday low of $183.26. This breakdown confirms strong bearish momentum after a steep sell-off from the $201 high earlier today. The absence of strong demand at $185 increases the probability of further downside movement.

The Relative Strength Index (RSI) is trending below 30, indicating oversold conditions. The price is also below the 50-period moving average, confirming the bearish trend.

Trade Plan – Short Setup:

Ideal Entry: Enter a short position between $185 and $187 on a minor pullback after the breakdown.

Stop Loss: Place the stop loss just above the broken support, around $190, to protect against a deeper correction.

Target 1: Set the first target at the recent support zone near $177.80.

Target 2: Aim for the next major support around $173.50.

Risk-Reward:

Target 1: Approximately 2.5x reward compared to the risk.

Target 2: Approximately 4x reward if the correction extends further.

Logic Behind the Trade:

The break of $185 has turned previous support into fresh resistance. Sellers are in control, with lower highs and lower lows forming on the chart. Volume confirms selling pressure, suggesting the move is not just a quick dip.

Profit Probability:

High (~70%) if the price stays under $185, but a strong bounce back above this level could trigger a short squeeze.