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UseTheBitcoin Market Update (SOL) | July 3rd, 2024

Author

Rickie Sanchez

Tags

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Category

Videos

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Reading time

2 mins
Last update


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).

Break From The Downtrend

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

Resistance Levels

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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.

RSI

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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.

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.

Strategy

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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.

Final Thoughts

For more in-depth technical analysis like this one, make sure to subscribe and hit the notification bell on UseTheBitcoin’s YouTube channel. We post daily videos covering the crypto markets, so don’t miss out!