The chart displays the 1-hour $SOL /USDT price movement on Binance, showing a recent downtrend with some consolidation near $196.40. Here’s the analysis:
1. Current Price Action: The price is showing signs of stabilization near the $196 level after a sharp decline from $201.56. A support zone is evident around $188-$190, as reflected by the 24-hour low at $188.34.
2. Entry Strategy:
Long Position: If the price breaks above $200 with strong volume, it indicates bullish momentum. Entry: $200.
Short Position: If the price breaks below $194 with increased selling pressure, it could signal further downside. Entry: $194.
3. Stop-Loss:
For Long: Set the stop-loss slightly below the recent low at $194 to minimize risk.
For Short: Set the stop-loss above $197 to protect against a reversal.
4. Target:
Long Position: Initial target at $205, with a secondary target near $210.
Short Position: Initial target at $190, with an extended target near $188.
5. Indicators and Risk Management: Watch for volume confirmation and RSI levels to avoid false breakouts. Risk-reward ratio should be maintained at 1:2 or better.
This setup reflects the current consolidation phase, allowing traders to react to breakout opportunities in either direction while minimizing risk.
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