SOL Technical Analysis: Triangular Convergence Brewing a Trend Change, Awaiting Directional Choice
The SOL daily chart shows a small bullish candle, with trading volume slightly increased compared to the previous day, but still within a normal volatility range. Technical indicators show that the MA30 moving average has slightly turned downwards, and the MACD is entangled below the zero line, reflecting a standoff between short-term bullish and bearish forces. It is noteworthy that a clear converging triangle pattern has formed on the hourly level, with the price fluctuation range gradually narrowing, indicating that the window for a trend change is approaching.
Short-term Trend Analysis
From the daily structure perspective, SOL still possesses upward momentum and is expected to test the upper resistance level of the red box area around 163 USD. If the breakout is successful, the next target will look towards the 175-186 USD range, and it may even challenge the 180-190 USD area. However, after completing this round of upward movement, the market is likely to experience a pullback for confirmation, with the daily MA120 moving average (145 USD) becoming a key short-term support level, potentially providing new entry opportunities at that time.
Key Price Levels and Trading Strategy
Key resistance levels to watch above are 163, 175, and 186 USD, while support levels below are at 145, 132, 121, and 110 USD. The current market is at a critical directional choice point, and it is recommended that investors closely monitor the breakout direction of the hourly triangle pattern. If there is a volume breakout above the upper line, one can follow the trend; if there is a false breakout followed by a pullback, then it is advisable to wait for the support test around 145 USD before making a decision. Short-term traders should control their positions to guard against volatility risk, while medium to long-term investors can gradually position themselves when retesting key support levels.
