$SOL L/USDT Technical Update - 4H Chart Analysis
Currently, on the SOL/USDT 4H chart, we're observing a potential Head and Shoulders pattern developing. The structure could signal a bearish trend reversal if confirmed. Here’s the breakdown:
Left Shoulder: Formed around the $229 level.
Head: Reached a peak of over $240.
Right Shoulder: Now developing near the $229 region.
The key level to watch is the neckline, which is situated between $224 and $225. A decisive breakdown below this area could indicate further downward movement, leading us to test lower support levels.
Bearish Trading Idea:
Entry Point: A short position below $224.
Target 1: First target at $215.
Target 2: Extended target at $205.
Stop Loss: Set above the $230 level to mitigate risk.
However, it’s important to note that if price action breaks back above $230, the Head and Shoulders pattern could be invalidated, and a bullish continuation might take place. As always, maintain caution and trade with a strategy in place.