Solana Analysis: Key Levels and Trading Perspectives 24.12.28
2024-12-28
Category: None

Hello, this is Greedy All-Day.
Today’s analysis focuses on Solana (SOL).

Daily Chart Overview



Starting with the daily chart, Solana has experienced a dramatic rebound after a 97% drop from its peak in November 2021. After nearly three years, it has risen back to the 267 resistance level but has struggled to break higher.

The key question here is whether Solana will surpass critical levels to aim for new all-time highs or if it will return to a corrective or bearish trend.

Buy Perspective



From a buying perspective:

Currently, Solana has dropped below the Ichimoku Cloud and is showing resistance at the cloud level on the daily chart.
A breakout of the resistance trendline may act as a signal for a short-term rebound, but for a more conservative approach, Solana must stabilize above the Ichimoku Cloud.
The first buy entry is at the green box breakout, roughly around 230. If Solana moves above this level, it could signal a renewed push toward all-time highs.

The second buy entry is at the 267 breakout. This level has served as resistance twice, so breaking it would likely lead to the formation of a new price frame with significant volume, signaling a strong upward trend.

Sell Perspective



From a selling perspective:

The short-term ascending trendline has already been broken, and a retest showed resistance, leading to a decline.
The blue box zone is a critical support level to monitor.
If this support fails, Solana is likely to drop further to the green box supply zone below. If you missed the initial entry at the trendline break, the blue box breakdown serves as the first signal for a sell position.

Key Long-Term Level



One of the most critical levels for Solana is the red box zone.

The red box is closely aligned with the long-term ascending trendline and has previously served as a pivotal support level.
Historically, a breakdown of this zone led to a prolonged bearish trend.
Currently, the 78 level in the red box is far below the current price, but in the volatile world of crypto, unexpected moves can occur. For now, keep this level in mind as a reference point for long-term analysis.

Conclusion

Solana has the potential to rise if key resistance levels are broken, but for now, the trend appears to have shifted back to bearish.
Be cautious and monitor critical levels like the Ichimoku Cloud, 230, and 267 on the upside, and the blue box zone and 78 level on the downside.

Let’s trade smart and stay prepared for both opportunities and risks. 🚀