#SOL Strong support at 200-day moving average, expected to rebound

Solana (SOL) encountered heavy selling pressure and fell near the 200-day moving average after a failed attempt to break through the $202 resistance level. SOL has fallen by nearly 37% in the past three months and found support near $127. A descending wedge pattern has emerged on the daily chart, indicating a possible bullish reversal signal.

Technical indicators show that SOL may fluctuate between $127 and $154 in the short term, providing profit opportunities for traders. If it can sustain above $154, it may retest the $172 area. Conversely, a break below the $127-$131 support level may trigger a further decline, pushing SOL into the oversold zone. The MACD indicator shows a bearish bias and is very important in predicting the short-term price trend of SOL.

According to Coinglass data, SOL's funding rate on major exchanges has fallen below zero, indicating that market sentiment is bearish. However, if the funding rate improves, SOL's market position may be strengthened, driving its price up. In addition, the overall market performance of Bitcoin (BTC) will also affect SOL's trend.

SOL is currently at a critical juncture. It finds support near the 200-day moving average and has the potential for a bullish rebound. Traders should pay attention to key technical indicators and market sentiment to make informed trading decisions. Whether SOL can break through the current resistance level or face further declines depends on market dynamics and investor sentiment.

Range Trading Strategy

Buy: Consider buying in batches when SOL approaches the $127-$131 support range.

Sell: Consider selling in batches when SOL approaches the $154 resistance range.

Bullish Breakout: If SOL continues to close above $154, consider adding long positions with a target price of $172.

Bearish breakout: If SOL falls below the support range of $127 to $131, consider liquidating and establishing a short position with a target price of $110 to $100. Control the position of a single transaction, not exceeding 10% of the total funds.

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