In the 2-hour chart, we can observe that the price of Solana $SOL has been fluctuating within a defined range. The area between 170 and 229 USDT appears to be a high liquidity zone, where major market players have been active.
TECHNICAL ANALYSIS:
1. Market Structure:
- Confirmed downtrend since the high of 219.95
- Two liquidity traps (red triangles) are identified indicating price manipulation
- The current price (191.12) shows signs of weakness with dominant red candles
2. VSA Analysis:
- Decreasing volume in the last sessions suggests lack of buying interest
- The comparison of volume with price shows institutional distribution
- No clear accumulation signals at current levels
3. Key Levels:
- Major Resistance: 219.95 (High)
- Critical Support: 174.06 (Low)
- Established Targets:
T1: 221.7
T2: 235.8
T3: 250
TRADING PLAN:
Entry: 198.19 (marked level)
Stop Loss: 161.069 (marked as Stop)
Risk/Reward Ratio:
- Towards T1: 1:1.5
- Towards T2: 1:2.4
- Towards T3: 1:3.3
RISK MANAGEMENT:
- Maximum position size: 2% of capital
- Stop loss protected below the "Bat" zone
- Consider partial exits at each target
PSYCHOLOGY:
1. The market shows signs of weakness - maintain discipline in entry
2. Recent liquidity traps suggest possible bearish continuation
3. Important to respect the stop loss in the face of bearish continuation signals
I used Crypto Info Bot 2.0 to obtain this information. See attached image.
