Trading recommendations for Solana (SOL) this week (June 1-7, 2025)
Market Overview: Based on current data and technical analysis from sources like TradingView and CoinMarketCap, Solana (SOL) shows moderate volatility with a neutral to slightly bearish trend in the short term. The current price ranges around $154.40 - $163.57 (according to CoinMarketCap and Binance), with a decline of 5.3% - 10.3% over the past week. However, fundamental developments such as the launch of new products on the Solana network (like Bubblemaps V2) and growth in decentralized finance (DeFi) support the possibility of a rebound if the price surpasses key resistance levels.
Technical analysis
• Key support levels:
◦ $126.24 - $129.12: Strong demand zone, if the price fails to hold it, it may retreat to $118.88.
◦ $118.88: A low support level considered a potential rebound area.
• Key resistance levels:
◦ $170.50 - $174.20: A breakout of this area may pave the way to $186.68 (Fibonacci level 0.618).
◦ $189 - $193: Strong resistance, may see a temporary rebound if reached.
• Technical indicators:
◦ Moving averages: The 50-day simple moving average (SMA) at $198.77, and the 200-day at $187.51, indicating a bearish trend in the medium term.
◦ Relative Strength Index (RSI): at 38.92 (14 days), indicating that SOL is approaching an oversold area, which may support a short-term rebound.
◦ Trading volume: decreased by 11% to around $4.3 - $6.88 billion daily, reflecting a slight decline in market activity.
Trading Recommendations
Based on technical and fundamental analysis, here are the trading recommendations for SOL this week:
1. Scalping - Short-term
• Buy:
◦ Entry point: $150.48 - $153 (at a temporary support area or confirmed rebound with a bullish candle on a 1-4 hour timeframe).
◦ First target: $167.85.
◦ Second target: $170.68.
◦ Third target: $174.20.
◦ Stop loss: $147.50 (below the low liquidity area).
• Sell:
◦ Entry point: $170.50 - $174.20 (when resistance fails to break with bearish signals such as decreased trading volume or RSI reversal).
◦ First target: $150.48.
◦ Stop loss: $177.
2. Swing Trading - Medium-term
• Buy:
◦ Entry point: $126.24 - $129.12 (strong demand zone with confirmation of a rebound through technical indicators).
◦ First target: $147.31.
◦ Second target: $170.50.
◦ Stop loss: $118.88 (to protect against potential collapse).
• Sell:
◦ Entry point: $156.29 - $160 (when institutional sell signals appear or fail to break resistance).
◦ First target: $142.07.
◦ Second target: $134.63.
◦ Stop loss: $160.
Fundamental factors affecting
• Positives:
◦ The launch of new products like Bubblemaps V2 boosts confidence in the Solana ecosystem.
◦ Increased activity in decentralized finance (DeFi) with a total value locked (TVL) of $6.315 billion, supported by platforms like Jito and Raydium.
◦ Standard Chartered's forecasts suggest a target of $275 by the end of 2025, reflecting long-term confidence.
◦ The possibility of approval for an exchange-traded fund (ETF) for Solana could drive prices up.
• Negatives:
◦ Decreased investor interest in meme coins on the Solana network may limit upward momentum.
◦ Overall market volatility and the impact of regulatory news (such as SEC issues) may negatively affect.
◦ An 11% decrease in trading volume indicates a slowdown in institutional activity.
Risk Management Tips
• Capital management: Do not risk more than 1-2% of your portfolio in a single trade.
• Use stop-loss orders: To protect capital from high volatility in the cryptocurrency market.
• Monitor news: Follow platforms like Binance and CoinMarketCap for real-time updates on prices and news.
• Avoid high leverage: Due to market volatility, use low leverage or avoid it altogether.
Price predictions for this week
• Bullish scenario: If the price breaks $170.50 with high trading volume and closes a strong daily candle, it may reach $186.68 - $193.
• Bearish scenario: If the price fails to hold the support at $150.48, it may retreat to $126.24 - $129.12, with a possibility of re-testing $118.88.
• Expected range: $126.24 - $174.20, with a tendency to trade in the range of $150.48 - $170.50 if the current momentum continues.
Disclaimer: Cryptocurrency markets are highly volatile, and trading involves high risks. The above recommendations are based on technical and fundamental analyses from reliable sources, but they do not guarantee profit. Conduct your own research and consult a financial expert before making any investment decisions.
If you need further analysis or illustrative charts, please let me know!