Current trend

At the beginning of the week, the SOL/USD pair grew and reached its highest values since January 2022 around 142.60, but on Tuesday the instrument sharply adjusted downwards within the general market trend, losing about 22.0% in value, and ended up at 112.50 (Murrey level [1/8]). The reason for this dynamics was the massive profit-taking by investors and the liquidation of some positions on BTC futures with a total volume of 1.17 billion dollars against the background of the achievement of the historical maximum of 69300.00 by the world's first cryptocurrency. The subsequent price pullback also led to a significant correction of altcoins.

Experts note that a similar situation has already been observed in 2020, and now, after a significant but short-term correction, the market has begun to grow again, rapidly regaining lost positions. In particular, SOL is currently already trading around 133.00. Investors remain interested in digital assets, and this situation is likely to last until the halving of the Bitcoin network, after which a new correction will become relevant again.

Support and resistance

Technically, the price is rising, restoring previously lost positions: quotes are close to 137.50 (Murrey level [3/8]), the breakdown of which will open the possibility for further growth to the levels of 155.70 (61.8% Fibonacci retracement) and 175.00 (Murrey level [6/8]). The key for the "bears" is the 100.00 mark (Murrey level [0/8], 38.2% Fibonacci retracement), consolidation below which may lead to a change in the current trend and a decrease in quotes to the levels of 75.00 (Murrey level [-2/8]) and 65.00 (23.6% Fibonacci retracement).

Technical indicators confirm the continuation of the uptrend: Bollinger Bands are reversing up, MACD is increasing in the positive zone, and Stochastic's reversal down does not exclude a corrective decline, but its potential is seen to be limited.

Resistance levels: 137.50, 155.70, 175.00

Support levels: 100.00, 75.00, 65.00.

Trading tips

Long positions can be opened above the 137.50 mark with targets of 155.70, 175.00 and stop-loss around 128.00. Implementation period: 5–7 days.

Short positions can be opened below the level of 100.00 with targets of 75.00, 65.00 and stop-loss around 110.00.