$SOL: Weakness hasn’t turned around—don’t rush to call a bottom
The weakness is clear, and the bias is bearish over the next few weeks. But oversold conditions are also hard to ignore, so chasing the move lower isn’t worthwhile. The close is below the intermediate-term moving average, but only by a narrow margin—not enough to suggest that more downside is opening up.
What’s missing is confirmation after a rebound. If price comes back to test this resistance but can’t hold above it by the close, the bearish case has a foothold. Next, watch whether price can reclaim this level—and whether it can hold above it afterward.
The key level is 100.51. First, wait for the daily candle to close below 100.51; only after a failed rebound is there a setup for a short.
If it works out, the first target is 85.3386. A stop at 108.096 invalidates this thesis.
#TrendTrading
The weakness is clear, and the bias is bearish over the next few weeks. But oversold conditions are also hard to ignore, so chasing the move lower isn’t worthwhile. The close is below the intermediate-term moving average, but only by a narrow margin—not enough to suggest that more downside is opening up.
What’s missing is confirmation after a rebound. If price comes back to test this resistance but can’t hold above it by the close, the bearish case has a foothold. Next, watch whether price can reclaim this level—and whether it can hold above it afterward.
The key level is 100.51. First, wait for the daily candle to close below 100.51; only after a failed rebound is there a setup for a short.
If it works out, the first target is 85.3386. A stop at 108.096 invalidates this thesis.
#TrendTrading