1. Current Trend:
- Downward Trend: The chart shows a clear downward trend, evidenced by the price trading below all key moving averages (MA(7), MA(25), MA(99)) and the consistent formation of lower highs and lower lows.
2. Key Support and Resistance Levels:
- Support Level: The immediate support level is around $141.04 (the recent low).
- Resistance Level: The closest resistance is at $145.06 (MA(7)) and stronger resistance around $152.94 (MA(99)).
3. Japanese Candlestick Analysis:
- Bearish Candlestick Patterns: The last few candlesticks are mostly red, indicating selling pressure. The most recent candle is a small-bodied red candle near the support, suggesting indecision but still bearish momentum.
4. Indicators and Oscillators:
- Moving Averages (MA): The short-term MA(7) is below the MA(25) and MA(99), confirming the bearish trend.
- Volume Analysis: There is a noticeable spike in volume on the recent downward moves, indicating strong selling pressure. The volume bars are also higher on red days, reinforcing the bearish sentiment.
5. Wave Analysis:
- Based on the current price action, SOL/USDT seems to be in a corrective wave within a broader downtrend, likely completing a wave down and potentially setting up for a minor corrective bounce.
Recommendations:
Short-term Trading:
- Entry Level: Consider entering a short position if the price breaks below the $141.04 support level with increased volume.
- Stop-Loss: Set a stop-loss above $145.50 (above the MA(7) and recent consolidation).
- Target Levels: First target at $140.10 (next psychological support), and if bearish momentum continues, $136.00 could be the next target.
Long-term Trading:
- Wait for Reversal Signals: For long-term positions, it's advisable to wait for a clear reversal signal or a break above the MA(99) at around $152.94, which could indicate a trend change.
- Accumulate on Dips: If you are bullish on SOL for the long term, consider accumulating at key support levels, especially if it dips toward $136.00 or lower.
Trading Recommendation: 📉
- Short SOL/USDT: Enter at $141.00 with a stop-loss at $145.50 and a take-profit at $136.00.
Please note that the information provided in this analysis is for educational and informational purposes only and should not be considered as financial advice.
