Solana (SOL) Breaks From The Downtrend Pattern, What\'s Next?

Let's examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on Solana (SOL).

Our Technical Analyst at UseTheBitcoin shares his personal trading approach and observations on Solana (SOL) in this video.

After 41 days in a downtrend, SOL finally broke out of the downtrend pattern and closed at around $154 to $155 levels. This breakout is significant as it indicates the token is gaining upward momentum.

The bullish candle that closed above the downtrend pattern suggests a potential shift in market sentiment. However, we must exercise caution as Solana is also approaching resistance levels.

The Relative Strength Index (RSI) is above the neutral levels, indicating bullish momentum. Historically, prices tend to go up when the RSI is above neutral levels, as seen in previous instances.

Here are two possible scenarios for Solana (SOL):

Option 1 – Retracement And Bounce

SOL could retrace back to around $144 levels. After retracing, it may bounce back from these levels and continue its upward movement.

Option 2 – Consolidation And Breakout

SOL could also consolidate around the current resistance levels ($154 – $155). After a period of consolidation, it may break out and move higher.

If you plan to invest in SOL, consider buying at around $144 levels (Option 1). Alternatively, add more to your position if it consolidates around $154 levels (Option 2). Based on these scenarios, your take-profit levels would be around $170 to $173 levels.

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