$SOL 1H level just broke through the previous high of $85.25, and firmly stood above EMA20 (84.88), forming a clear momentum breakout structure. The 4H level has seen consecutive bullish candles, breaking through the recent consolidation upper range, with the trend turning bullish. The current price is strongly consolidating around $87.2, with deep buying interest, rejecting significant pullbacks, which is a typical characteristic of a strong short squeeze market.
🎯 Direction: Long
🎯 Entry/Limit Order: $86.80 - $87.00 (Reason: 1H level EMA20 dynamic support zone, also the first retest confirmation after the breakout)
🛑 Stop Loss: $85.50 (Reason: Breaks below the 1H level breakout candle low of $85.76 and EMA50 support)
🚀 Target 1: $89.50 (Reason: Previous swing high and round psychological level)
🚀 Target 2: $92.00 (Reason: 4H level previous high resistance zone, ATR 1.5 times extension)
🛡️ Trade Management:
- Position Suggestion: Standard position (Reason: 1H/4H resonance breakout, volume and price both rising, high certainty)
- Execution Strategy: After the price reaches $89.50, reduce position by 50% to lock in profits, and move the stop loss of the remaining position to the entry price of $87.00. If the price strongly breaks through $89.50 and holds, consider adjusting the target for the remaining position to $92.00.
Deep Logic: The latest 1H candle saw a surge in trading volume, with buying accounting for 60%, which is a clear signal of institutional funds entering. Although OI shows stability, combined with a negative funding rate (-0.0135%) and strong price increase, a typical short squeeze market is brewing. Depth shows buying is accumulating in the $87.0-$87.2 range, providing strong support. The 1H RSI (76) is slightly high, but can be tolerated in a strong breakout market. The key is to capture the initial momentum surge of the breakout.
Trade here 👇
$SOL ---
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