In our previous analysis, we highlighted a key profit-taking zone for $SOL /USDT around the $160 - $165 range. True to our prediction, Solana hit $165.02, confirming that our strategy was on point. Now that this major level has been reached, what should both futures traders and spot holders do next?

A Look Back at Our Prediction

Just a few hrs ago, we discussed that $SOL was showing signs of an imminent rally, and traders holding long positions should look to secure profits around the $160 to $165 range. With the RSI and Stoch RSI flashing overbought conditions at the time, it was the ideal window to capitalize on the surge.

What Comes Next?

For Futures Traders:

  1. Long Positions:

    • If you followed our recommendation and took profits at $165, congratulations! At this point, it would be prudent to wait for the next breakout. A sustained push above $167 could open the door to higher targets like $170 and $175, but be cautious as indicators are suggesting the market is still overbought.

    • If SOL consolidates or pulls back, look for re-entry around $155 - $150 to ride the next wave up.

  2. Short Positions:

    • Given the current market sentiment, a correction is likely to follow this rally. Look for reversal signals around $167, which could be a prime entry point for shorting. Keep your stop losses tight, as the market is volatile, and sudden bullish momentum could invalidate your position.

For Spot Holders:

  • Partial Profit-Taking: If you’ve been holding SOL from lower levels, now is a great time to secure some profits. However, the long-term outlook for SOL remains strong, so maintaining a portion of your holdings for future gains could still pay off.

  • Reinvest on Dips: Should the price correct, ideal buy zones are between $150 and $140. A pullback to these levels could offer a better risk-to-reward ratio for re-entry.

Market Indicators:

  • RSI: Currently at 89.60, this shows the market is significantly overbought, supporting the possibility of a near-term correction.

  • Stoch RSI: With readings over 90, the momentum is still strong, but also suggests the possibility of exhaustion.

  • OBV: On-Balance Volume (OBV) has shown strong accumulation, but a decrease in volume or negative divergence could signal a pullback.

Key Levels to Watch:

  • Immediate Resistance: The next resistance level sits at $167, which is a key psychological barrier. A break above could lead to a move toward $170 - $175.

  • Support Levels: Watch for support around $155, $150, and $140 on pullbacks.

With SOL hitting our predicted range, it’s important to remain vigilant as the market shows signs of volatility. For traders who took profits, consider waiting for a dip to re-enter at more favorable levels. For those holding out for more gains, watch how SOL reacts to the $167 resistance. The next few days could offer excellent opportunities to take advantage of SOL’s momentum.

Stay updated, keep your eyes on key indicators, and manage your risk wisely!

What are your thoughts on SOL's next move? Share your strategy in the comments below!