Solana Getting Ready for a Dump? Here's How to Trade This!
Solana pulled back to the bull channel support after ripping to $68.00. We're seeing some strong bull channel support at $51.00, but is it enough to continue the trend? There are a few ways we can look at this chart, let's explore.
How do we trade this?
Entering a trade at this level is weak. Bull channel support and the previous resistance levels are very close to the current price and we don't have a strong signal either way. It's reasonable to be biased toward a long since we're in a bull channel, but we have not seen a strong confirmation bar. Bitcoin, as a leading indicator, is also failing to break Weekly resistance and is signaling a pullback, which may impact Solana's ability to go up. RSI is also around 60 and while not a strong indicator, gives us *some* bias toward the downside.
We need a sell signal at resistance, or a strong buy signal on bull channel support with follow-through before entering a trade. A reasonable stop loss for a long is below the bull channel support or below the 30EMA and above the previous resistance if we're shorting. The bottom line, we need a little more price action before rushing into a trade.
Key Points
1. Bull Channel, Look for Long Entry.
2. Near Previous Resistance.
3. Wait for a sell signal at Bull Channel Resistance.
4. Wait for a breakout of Previous Resistance.
5. RSI is near 60, Bias toward the downside.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
How do we trade this?
Entering a trade at this level is weak. Bull channel support and the previous resistance levels are very close to the current price and we don't have a strong signal either way. It's reasonable to be biased toward a long since we're in a bull channel, but we have not seen a strong confirmation bar. Bitcoin, as a leading indicator, is also failing to break Weekly resistance and is signaling a pullback, which may impact Solana's ability to go up. RSI is also around 60 and while not a strong indicator, gives us *some* bias toward the downside.
We need a sell signal at resistance, or a strong buy signal on bull channel support with follow-through before entering a trade. A reasonable stop loss for a long is below the bull channel support or below the 30EMA and above the previous resistance if we're shorting. The bottom line, we need a little more price action before rushing into a trade.
Key Points
1. Bull Channel, Look for Long Entry.
2. Near Previous Resistance.
3. Wait for a sell signal at Bull Channel Resistance.
4. Wait for a breakout of Previous Resistance.
5. RSI is near 60, Bias toward the downside.
You are solely responsible for your trades, trade at your own risk!
Let us know what you think in the comment section below!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
Related publications
Disclaimer
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.