SOL has been defending this huge support around ~120$ for several months now but I'm afraid we are going to see a drop below this area very soon. The price action of the last few weeks clearly have the characteristics of a SHS pattern, with the head located around 184-190$. So this would give us a target of ~80$ but really not sure if it's going to drop that low.
However, pretty sure we are going to see at least 100$ getting tested, there is just too much liquidity resting below 120$ (triggered stops and liquidations that is), so it could drop to 100$ and see a quick recovery above 120$. From there I won't dare to predict what could happen next.
So, if we see SOL approaching the green zone again and not see a big bounce but rather see momentum slowing down, it's just a matter of time until it's going to drop IMO.
Timing this can be difficult, especially if you want to short this (which I would NOT recommend). Better play would be to wait for a long entry around 100$ on low leverage and build your position throughout a possible bottom formation and add on a clean break and retest of 120$.
Stay safe!
However, pretty sure we are going to see at least 100$ getting tested, there is just too much liquidity resting below 120$ (triggered stops and liquidations that is), so it could drop to 100$ and see a quick recovery above 120$. From there I won't dare to predict what could happen next.
So, if we see SOL approaching the green zone again and not see a big bounce but rather see momentum slowing down, it's just a matter of time until it's going to drop IMO.
Timing this can be difficult, especially if you want to short this (which I would NOT recommend). Better play would be to wait for a long entry around 100$ on low leverage and build your position throughout a possible bottom formation and add on a clean break and retest of 120$.
Stay safe!
Note
So far it's following my idea. Dropped to 120$ followed by a weak bounce. Now, if SOL stays below ~127$ over the next few days we should see another, probably much larger drop. As I said, 100$ is likely but could go as low as 80$. Note
Bounced a bit higher than expected, but if you are a bear, this is where you short. Risk/Reward still is in favor for bears, think a strong push above 140-142 would confirm a bear trap.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.