Current market situation
- SOL Price: At the time of analysis (according to the latest Binance-Peg SOL data), the price is around 112.64 USD.
- Daily range: The high is 117.73 USD, the low is 108.46 USD.
- Price change: The price fell slightly compared to the previous close.
Major technical levels
- Support:
- Key support levels are seen around 108-110 USD . If price continues to decline, the first target is to test the level around 108 USD, followed by possible support around 105-107 USD based on previous lows.
- Resistance:
- The daily timeframe chart shows near-term resistance levels around 115-117 USD. A break above these values could signal further bullish momentum.
Indicators and moving averages
- Moving averages (MA/EMA):
- Short-term MAs (e.g. EMA 10 and SMA 10): If price is below these lines, it may indicate short-term weakness. If they are broken upwards, it may signal a bullish reversal.
- Long-term MAs (e.g. SMA/EMA 50, 100, 200): If price holds above longer-term moving averages, it confirms an overall bullish trend. At current levels, price near 112 USD may be close to some of these lines, which requires verification.
- Pulse indicators:
- RSI (14): When the indicator is around 40-60, the market can be interpreted as neutral. If the RSI falls below 30 - an oversold signal, above 70 - an overbought signal. At the current level it is possible to observe a balanced position, but in case of support breakdown RSI may show oversold.
- MACD: The difference between the MACD main line and the signal line helps to track the direction of the momentum. If a bearish crossover is observed (MACD-signal line crosses the main line from top to bottom), it confirms downward momentum.
Volatility and Volume
- ATR (Average True Range): Allows you to estimate the current market volatility. Higher volatility may indicate the possibility of sharp moves, either up or down.
- Volume: If there is an increase in volume in the support zone, it may be a signal of a trend reversal and the possibility of a rebound. On the contrary, low volume on a downward move confirms selling weakness.
Possible scenarios
1- Bullish scenario:
- If the price strengthens and breaks the nearest resistance levels (115-117 USD) with confirmation by volumes and positive indicator signals (e.g. RSI reversal from oversold zone), SOL may push to the next level - possibly around 120-123 USD.
- In this case, a stop loss can be placed just below the support level (around 108 USD).
2. Bearish scenario:
- If support breaks below 108 USD and indicators are negative (e.g. deterioration of MACD, increased selling volume), the price may decline to the next significant support levels, which may be around 105-107 USD or lower.
- In such a case, it is recommended to tightly control risk and set stop losses to protect capital.
3. Consolidation situation:
- The price may remain in the range between 108 and 117 USD, showing a sideways movement. This is a typical short term situation where an exit from the range with volume confirmation will be decisive.
Trading recommendations
- For bullish positions: Consider entering on confirmation of a breakout through 115-117 USD with rising volumes, setting a stop loss below a key support level (e.g. around 108 USD).
- For bearish positions: If support breaks below 108 USD, you can go short with a stop loss just above the recent low (around 112 USD or higher).
- Risk Management: Regardless of the strategy, always use a stop-loss and follow money management rules given the high volatility of the crypto market.
Bottom Line
At the moment Solana is trading in a sideways movement with a clear tension between support (around 108-110 USD) and resistance levels (115-117 USD). The choice of strategy depends on the price behavior in the near term: if there is a breakout above 115-117 USD, it is a signal to buy; if there is a breakout of support below 108 USD with volume confirmation and negative indicator signals - consider short positions.
