Head and Shoulders Pattern Suggests Further Downside
2024-10-25

The SOLUSDT chart is currently forming a bearish head and shoulders pattern, a well-known technical indicator that typically signals an impending trend reversal. The pattern's left shoulder, head, and right shoulder have formed, and the price is now testing the crucial neckline around $170.80.

Implications of the Pattern If SOLUSDT breaks below the neckline, it could trigger a significant downward move, potentially driving the price toward the key support level at $164. This area is expected to provide some temporary support, but the overall trend suggests that more downside pressure is likely if the neckline breaks convincingly.

Trading Strategy: Prioritize Selling Traders should focus on short opportunities, especially if the price breaks and closes below the neckline. A short position could target the $164 zone, with further selling pressure possibly extending beyond that point if bearish momentum continues.

In summary, the head and shoulders pattern presents a bearish outlook for SOLUSDT, and shorting strategies should be prioritized as the price approaches the neckline for confirmation of the downtrend.