Phemex Analysis #50: How to Trade SOLANA Like A ProSolana ( PHEMEX:SOLUSDT.P ) has been relatively subdued during the recent November and December 2024 bull run, rising approximately 100%, a stark contrast to its explosive growth of over 1000% during the October 2023 to March 2024 rally. However, the fundamentals of Solana remain robust, with its Total Value Locked (TVL) increasing from $0.3 billion in October 2023 to an impressive $9.5 billion today—a staggering 3166% rise. This demonstrates that Solana’s ecosystem is stronger than ever.
In this article, we’ll analyze possible scenarios for SOL’s price movement over the next few days and provide actionable trading strategies to help you trade like a pro.
1. Bullish Breakout Scenario
Since January 1, 2025, SOL has rebounded by 17%, currently consolidating around the $210 level as it gathers momentum for its next potential move. If SOL manages to break through the $234 resistance level and subsequently surpass $247, there’s a high probability that it could continue its upward trajectory and form a new all-time high (ATH). This bullish momentum could be fueled by developments such as the launch of Solana ETFs or advancements in AI agent integrations within its ecosystem.
Trading Strategy:
If SOL breaks above $234 with high trading volume, consider opening a Long position. And set your stop-loss at $210 to manage risk effectively.
Remember to monitor key news or announcements that could act as catalysts for further price surges.
2. Bearish Drop Scenario
On the downside, if SOL fails to hold above $210 and breaks below this level with significant volume, it could trigger a drop toward the $180 or $175 support levels. Should overall market sentiment turn bearish—especially if Bitcoin also declines—SOL might test deeper support zones at $155 or even $135.
Trading Strategy:
For advanced traders, consider opening a Short position if SOL drops below $210 with substantial volume. Take profits at key support levels such as $180 or $175.
For long-term holders, these levels ($180, $175, $155, and $135) present potential buy-the-dip opportunities based on your risk tolerance.
Key Considerations for SOL Traders
I. Fundamental Strength: Solana’s growing TVL and ecosystem development are strong indicators of its long-term potential. Keep an eye on updates such as ETF launches or institutional adoption.
II. Technical Indicators: The Relative Strength Index (RSI) is currently above the midpoint, signaling potential bullish momentum. Watch closely for price action around key resistance levels ($234 and $247) and support levels ($210, $180).
III. Market Sentiment: Recent data shows a net inflow of $224 million in SOL to centralized exchanges over the past week—a trend that could signal increased selling pressure or preparation for derivatives trading. Be cautious of sudden shifts in sentiment.
Conclusion
Trading SOL like a pro requires adapting your strategy to evolving market conditions. Whether you’re aiming to capitalize on a bullish breakout or hedge against a bearish drop, understanding key price levels and market dynamics is crucial. Always combine technical analysis with fundamental insights and practice disciplined risk management.
By staying informed and prepared for multiple scenarios, you can navigate Solana’s market movements with confidence and precision.
Tips:
Trade Smarter, Not Harder with Phemex. Benefit from cutting-edge features like multiple watchlists, basket orders, and real-time strategy adjustments. Our unique scaled order system and iceberg order functionality give you a competitive edge.
Disclaimer: This is NOT financial or investment advice. Please conduct your own research (DYOR). Phemex is not responsible, directly or indirectly, for any damage or loss incurred or claimed to be caused by or in association with the use of or reliance on any content, goods, or services mentioned in this article.
