The 1-hour SOL/USDT chart reflects a key setup that traders should watch closely. With price currently hovering around $133.86 .
Support & Resistance Levels
- Immediate Resistance: $139.80
- Next Resistance: $140.80
- Immediate Support: $126.27
- Stronger Support: $120.00, a critical level to watch in case of a pullback.
- Last Support: $119.01 (highlighted by previous price action)
Chart Patterns & Indicators
- The price appears to be ranging between $126.27 and $139.80, with several rejections from the resistance level.
- The RSI (Relative Strength Index) is showing a value around 56.40 (20-period), indicating that there’s some room for upward movement, but the market isn’t in overbought territory yet.
- The MACD (Moving Average Convergence Divergence) line (0.20) crosses above the signal line (0.02), signaling a potential bullish momentum build-up.
Indicator Analysis
- MACD: The crossing of the MACD line above the signal line in combination with rising histogram bars suggests bullish momentum could increase if price breaks above $139.80.
- RSI (20, 40, 60): Hovering in a neutral zone, the RSI across different periods shows some bullish strength, but not strong enough to confirm a significant uptrend yet.
- Volume Analysis: The volume spike on previous bullish attempts has faded slightly, indicating that a decisive breakout requires increased participation.
Bullish Scenario (Continuation Pattern)
A clean break above $139.80 followed by strong volume would confirm the continuation of the uptrend toward $140.80 and possibly beyond. Traders can look for a potential bullish breakout, with upside targets at:
- Target 1: $138.00 (initial push level)
- Target 2: $139.80 (current resistance)
- Target 3: $144.50 (longer-term target if momentum holds)
- Target 4: $148.00 (strong rally)
Bearish Scenario (Rejection)
However, the lack of volume or RSI pushing into overbought territory suggests the price may reject from the current resistance. In this case:
- Watch for price action dipping back toward the $126.27 support level, with a potential drop to $120.00 if selling pressure increases.
Risk Management
For risk-averse traders, using a 1:3 risk-reward ratio is recommended:
- Entry Point: Around $133.86 (current price)
- Stop Loss: Set at $126.00, slightly below the immediate support level to avoid getting stopped out by false wicks.
- Target 1: $138.00
- Target 2: $140.80
- Target 3: $144.50
- Target 4: $148.00
Traders should monitor price action carefully near $139.80 resistance. A break above with solid volume could send the price soaring to higher targets, while a rejection might pull it back toward key support at $126.27 or even $120.00. Be patient and confirm with indicator alignment before entering any trades.
