The three-day chart of the SOL/USDT pair shows a typical reversal of the inverted head and shoulders pattern, confirming a significant trend shift. The following structure illustrates:
- Left shoulder: $125 (initial stabilization)
- Head: $95 (final bounce bottom)
- Right shoulder: $130 (higher low confirmation)
- Neckline breakout: $140 (bullish confirmation)
With SOL trading now at $160, the technical implications become clear:
1) The measured movement target is at $185 ($140 + ($140 - $95))
2) The 200-day moving average flipped to a support level at $142
3) The relative strength index shows good momentum without severe overbought conditions
Key trading insights:
1) Profit-taking strategy:
- Consider partial exit at $175 and $185
- Allow part of the share to move towards $210 (previous cycle high)
2) New entry opportunities:
- Watch for pullbacks to $150 (weekly gap)
- Strong support at $142 (200-day moving average/neckline convergence)
3) Risk management:
- Maintain a reasonable leverage (3-5 times the maximum)
- Avoid stop losses - use averages at unexpected dips
This breakout indicates that SOL has shed its bearish momentum. While volatility will continue, the pattern confirms that bulls have regained control.
(Remember: the best trades combine pattern recognition and disciplined execution. This setup gave us the signal - now it's about managing the trade.)
Note: Inverted head and shoulders patterns are among the most reliable reversals. This pattern has given us a 68% move - will you be ready for the next phase?