$SOL Technical Analysis Review (Daily Timeframe)
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#Signal. SOL/USDT Technical Analysis Review (Daily Timeframe)
Bullish Pennant Pattern
A bullish pennant pattern has formed before, indicating a potential continuation of the uptrend. However, the current movement shows consolidation below a strong resistance area. This is an important area to watch.
Key Resistance and Support Areas
Strong resistance is located around the $260-$265 level (based on the 0.786 Fibonacci retracement line). This area is a big challenge for the price to move higher.
Key support is located at the $155-$165 level (near the 0.618 Fibonacci retracement level). If the price falls below this area, a deeper bearish trend reversal is likely.
Moving Average Indicator
The blue line (possibly a medium-term MA) shows the long-term bullish trend is still in effect, but momentum is slowly weakening.
The red line (possibly a short-term MA) shows increasing selling pressure on this timeframe.
Price Action Projection
Bullish scenario: If the price manages to break through the resistance around $260 with large volume, the next target could be $300 or higher.
Bearish scenario: If the price fails to hold above the support of $155, the next downside target could be $133 or even $103 (based on the Fibonacci levels of 0.5 and 0.382).
Volume
Trading volume is quite volatile, but there is a decrease in volume as the price approaches the resistance area. This indicates hesitation or lack of encouragement from buyers.
Personal Opinion
Looking at the existing pattern, SOL still has the potential to move up in the long term, but special attention needs to be paid to the resistance area of $260-$265. If you are a trader, it is advisable to wait for confirmation of a breakout or breakdown before making a decision. For long-term investors, a drop to the support area of $155-$165 could be an accumulation opportunity, provided that the general market sentiment is supportive.
In addition, fundamental factors such as the development of the Solana ecosystem, overall crypto market sentiment, and macroeconomic news should also be considered in decision making.
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