Solana Double-Top & Retest Of Support —Trading Strategy 101
2025-01-31
Category: None

This is super important if you are one of those highly profitable traders.
If you aren't, this is super important if you want to become one.

What we have here is a short-term double-top.
We are looking at Solana as in SOLUSDT. Timing is key.

Notice the peak price hit November 2024. This is clearly marked on the chart.

Now, notice the higher high hit just weeks ago, 19-January 2025. This is a double-top.

Notice the grey line here denoting resistance and the November 2024 high.
SOLUSDT challenged this resistance five times and every time was rejected. The strongest instance happened 19-January. A very strong rejection. This rejection is marked by really high bearish volume.

What does this means?
What to make of this information?

This means that resistance is very strong at this level and it has been confirmed.

This confirmation of resistance has short-term bearish tendencies.

When such strong resistance shows up in a pair, the market tends to move lower, looking for strength. It moves lower and produces a double-job. It removes weak hands and over-leveraged positions, it also opens the doors for new buyers to show up.

The strong resistance confirmed means that sellers were present while buyers were gone. If buyers are gone, the market needs lower prices, this will surely entice new traders to enter Solana for the next wave.

The fact is that we are bullish long-term, we are in bull-market year but short-term anything goes.

If we are set to continue consolidating, sideways until late February, it would only be normal to see some bearish action in the coming days and weeks, because the market will be ultra-bullish after February, in March 2025 and beyond.

The high bearish volume on this chart reveals the market tendency. The chart is sideways but the participants tendency is to sell.

When the buy (green) volume bar/lines are bigger than the sell (red), we know that buyers are present. When buyers are present and loading, that's when the next advance will take place.

How are you doing my friend?

I hope you find this information useful and it helps you to improve your entry timing and increase your trading success.

You are appreciated for your continued support.

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