1. MARKET OVERVIEW
Current price: $170.89
24h volatility: -2.25%
Trading volume (24h):
SOL: 2.43 million
USDT: 425.33 million
SOL is in a correction phase after an impressive breakout to the $295 area at the beginning of 2024. So, is this correction just a 'breather' or does it signal a deeper decline?
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2. TECHNICAL ANALYSIS
Bollinger Bands (BB):
The price has just touched the lower BB and is bouncing back, indicating a short-term recovery signal.
The BB range is expanding => the market may soon experience strong volatility.
Moving Average (MA):
MA(5): $131.36 million
MA(10): $127.65 million
The price is bouncing from MA10 (pink) => a good temporary support area.
MACD:
MACD: -3.53 | DEA: 30.25
The MACD line has crossed below the signal line => the short-term trend remains negative.
However, the indicator is at the bottom, with the potential for positive divergence to appear in the next few sessions.
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3. TRADING VOLUME
Volume is showing signs of slight increase after 3 sessions of decline => investors are beginning to accumulate again at the strong support area around $160 - $170.
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4. ASSESSMENT AND STRATEGY
Bullish scenario:
If the price breaks $178.33 (24h high) with large volume, the next target will be the strong resistance area of $195 - $205.
Bearish scenario:
If the price breaks $170 and fails to hold above $160, the likelihood of a deep correction to $147 - $131 is very high.
Proposed strategy:
Short-term investors: May buy cautiously around $170, cut losses below $160.
Medium-term investors: Wait for confirmation of a breakout above $180 with volume to buy in strongly.
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5. SUMMARY
SOL is at a critical stage - either it will bounce back and continue the long-term uptrend, or it will undergo a deep correction towards previous support levels. Price action in the coming days will be key to determining the trend for Q2/2025.