Technical Analysis for SOL (Current Price):
1. Support and Resistance Levels:
• Support Level: Around $128. If the price drops to this level, it could find support and potentially bounce back.
• Resistance Level: Around $137–$140. If the price rises to this level, we might see a reversal or a struggle to break through, which would be the resistance point.
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Long Trade (Buy Setup)
• Entry: $132 (if price is near the support level or showing bullish reversal signs).
• Stop Loss: $128 (just below the support level to protect from further downside).
• Take Profit: $140 (next resistance level).
• Risk/Reward: 2:1 (Good risk-to-reward ratio).
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Short Trade (Sell Setup)
• Entry: $137 (if the price hits resistance and shows signs of rejection, like a bearish candlestick pattern or RSI overbought).
• Stop Loss: $140 (slightly above the resistance level to give room for minor fluctuations).
• Take Profit: $130 (near support).
• Risk/Reward: 2:1 (good risk-to-reward ratio).
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Conclusion:
• Long Trade Setup: If the price shows signs of bouncing off $128 (support), and RSI and MACD are bullish, a long trade is favorable.
• Short Trade Setup: If the price moves towards $137–$140 (resistance), and RSI is showing overbought conditions, or if a bearish reversal pattern is seen, a short trade is more likely to succeed.
Based on the current price of $132, I recommend keeping an eye on the support and resistance levels, and RSI/EMA/ MACD indicators to confirm the ideal trade direction.
