$SOL

### SOL/USDT 1-Day Trading Strategy

**Current Price**: $118.58 (-4.58%)

**Key Levels**:

- **Resistance**: $136.21 (24h High), $130.00 (psychological level).

- **Support**: $116.25 (24h Low), $110.00 (next critical support).

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#### **Strategy 1: Bearish Breakdown**

1. **Entry**: Short if price breaks below **$116.25** (24h Low) with rising volume.

2. **Targets**:

- **First Target**: $110.00 (psychological support).

- **Second Target**: $105.00 (historical support).

3. **Stop-Loss**: **$120.00** (above recent consolidation).

4. **Risk-Reward Ratio**: 1:3 (risk $3.75, reward $11.25).

#### **Strategy 2: Bullish Reversal**

1. **Entry**: Buy if price reclaims **$125.00** (recovery level) with strong buying volume.

2. **Targets**:

- **First Target**: $130.00 (psychological resistance).

- **Second Target**: $136.21 (24h High).

3. **Stop-Loss**: **$115.00** (below 24h Low).

4. **Risk-Reward Ratio**: 1:2.5 (risk $10.00, reward $25.00).

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#### **Execution Notes**:

- **Volume Confirmation**: Ensure a 20%+ increase in volume during breakdown/reversal to validate the move.

- **Order Book**: Current sell dominance (57.81%) supports bearish bias, but watch for sudden buy-side liquidity.

- **Volatility Management**: Layer 1 tokens like SOL can swing sharply; use tight stop-losses.

**Position Sizing**: Risk ≤ 2% of capital per trade.

**Rewards**:

- Bearish success: **-5.5% to -9.6% returns** ($6.58 to $11.58 profit on a short position).

- Bullish success: **+4.8% to +12.7% returns** ($5.72 to $17.63 profit on a long position).

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#### **Precautions**:

1. **Avoid Over-Leverage**: SOL’s volatility can trigger rapid liquidations.

2. **News Sensitivity**: Monitor Layer 1 ecosystem updates (e.g., network upgrades, partnerships).

3. **Liquidity Check**: Confirm order book depth near $116.25 and $125.00 to avoid slippage.

**Summary**: Trade the breakdown below $116.25 for shorts or a bullish reversal above $125.00. Prioritize volume-backed moves and strict risk limits. Bearish momentum is dominant, but always prepare for unexpected reversals in high-volatility assets.