Solana (SOL) is retreating from its peak at $209, amid a crypto market weakened by Bitcoin's loss of the bullish trendline. A bearish divergence on the RSI and key liquidity zones indicate an imminent correction. Explore a technical analysis and a short strategy on Bitget to capitalize on this movement.
After reaching $209 last week, Solana (SOL) is now experiencing losses along with the entire crypto market.
Indeed, Bitcoin has lost its HTF bullish trendline, as Killa points out on X. The technical outlook doesn’t bode well for cryptocurrencies in the coming weeks.
Additionally, SOL displays a clear bearish divergence on its daily RSI. A return to the liquidity zone at $110 is therefore possible, with a bearish trendline to break at $151.
In this context, SOL offers a favorable swing short opportunity, especially considering that SOL might experience a short-term bounce to $189.
Indeed, SOL has a strong resistance zone between $184 and $190 with POCs and liquidity zones in LTF.
The trade setup for SOL :
In summary, SOL shows bearish divergences and is approaching a resistance zone in LTF. Furthermore, BTC has lost a key HTF support, indicating a correction in the coming weeks.
For SOL to break above $200, it would need a catalyst and a strong BTC rally, likely toward new all-time highs. Remember to move your SL to “break even” (your entry price) once the price has moved sufficiently in your favor. Also monitor its price action, especially if it approaches $190 quickly with or without significant volume.
Here’s a SOL short strategy on Bitget’s USDT-M Futures, using moderate leverage (5x) to manage risk :
Tips : Monitor RSI (<50 to confirm the drop or overbought in 30-minute timeframe for optimized entry) and volume (>$1.5 billion). A close above $200 invalidates the strategy.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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