### SOL/USDT 1-Day Trading Strategy
**Current Price**: $118.58 (-4.58%)
**Key Levels**:
- **Resistance**: $136.21 (24h High), $130.00 (psychological level).
- **Support**: $116.25 (24h Low), $110.00 (next critical support).
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#### **Strategy 1: Bearish Breakdown**
1. **Entry**: Short if price breaks below **$116.25** (24h Low) with rising volume.
2. **Targets**:
- **First Target**: $110.00 (psychological support).
- **Second Target**: $105.00 (historical support).
3. **Stop-Loss**: **$120.00** (above recent consolidation).
4. **Risk-Reward Ratio**: 1:3 (risk $3.75, reward $11.25).
#### **Strategy 2: Bullish Reversal**
1. **Entry**: Buy if price reclaims **$125.00** (recovery level) with strong buying volume.
2. **Targets**:
- **First Target**: $130.00 (psychological resistance).
- **Second Target**: $136.21 (24h High).
3. **Stop-Loss**: **$115.00** (below 24h Low).
4. **Risk-Reward Ratio**: 1:2.5 (risk $10.00, reward $25.00).
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#### **Execution Notes**:
- **Volume Confirmation**: Ensure a 20%+ increase in volume during breakdown/reversal to validate the move.
- **Order Book**: Current sell dominance (57.81%) supports bearish bias, but watch for sudden buy-side liquidity.
- **Volatility Management**: Layer 1 tokens like SOL can swing sharply; use tight stop-losses.
**Position Sizing**: Risk ≤ 2% of capital per trade.
**Rewards**:
- Bearish success: **-5.5% to -9.6% returns** ($6.58 to $11.58 profit on a short position).
- Bullish success: **+4.8% to +12.7% returns** ($5.72 to $17.63 profit on a long position).
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#### **Precautions**:
1. **Avoid Over-Leverage**: SOL’s volatility can trigger rapid liquidations.
2. **News Sensitivity**: Monitor Layer 1 ecosystem updates (e.g., network upgrades, partnerships).
3. **Liquidity Check**: Confirm order book depth near $116.25 and $125.00 to avoid slippage.
**Summary**: Trade the breakdown below $116.25 for shorts or a bullish reversal above $125.00. Prioritize volume-backed moves and strict risk limits. Bearish momentum is dominant, but always prepare for unexpected reversals in high-volatility assets.