Trade Setup: SOL/USDT – Supply/Demand Based Short Opportunity
Trade Plan – Short Setup
Bias: Bearish (if demand breaks)
Entry: Break and retest of $124.00
Stop Loss: Above $126.20 (above last minor lower high)
Target 1: $121.00
Target 2: $118.50
Risk-Reward: Approx. 1:2.5+
Market Context (Supply & Demand Analysis)
1. Supply Zone:
Price recently rejected hard from the $134 – $135 zone, forming a clear supply area where sellers are dominant. Multiple wicks and failed breakouts confirm this.
2. Demand Zone Breakdown:
SOL is now sitting at the $124 – $125 demand zone, which has been tested several times. With increasing open interest and selling pressure, this zone looks weak.
3. Volume & Sentiment:
Taker Sell Volume is exceeding buy volume – aggressive sellers are active.
Open Interest rising while price drops = likely short buildup.
Top traders heavily long (Ratio 2.78) – potential for a stop hunt or long squeeze.
Extra Confluence
Price is forming lower highs = bearish structure.
Longs overloaded; market may go opposite to clear them out.
Weak demand zone = likely to break soon under pressure.
Caution: Wait for a clean break & retest of the $124 demand zone with volume confirmation. Don’t short in consolidation.