SOL is clearly in a downward trend daily, with a price consistently making lower highs under the descending trend line. The price is now retracing to a potential lower high test area, directly aligning with the overlap of the 50/100 moving averages above it. Unless SOL can reclaim this line with a strong daily close, these setups favor a continued downward trend.
The first major area of interest is the support at $126, which has acted as a key reaction zone for several months. Clearly breaking this level opens the door towards the lower liquidity area at $109, which historically attracts deep candles and stop hunting before reversal attempts.
The Stoch RSI is still in the overbought territory, but without a confirmed bullish crossover or momentum shift. The trend structure takes precedence unless buyers reclaim the line and break the sequence of lower highs.
Monitoring for:
• Reaction upon re-testing the trend line
• Daily close above or below $126
• Withdrawal of liquidity towards $109 for potential reversal setups
