Current trend

The SOL/USD pair is moving within the medium–term descending channel: this week, quotes again approached its upper limit and tested the key resistance zone of 157.40–162.50 (23.6% Fibonacci retracement–Murrey level [ 2/8]), at the breakout of which the price will leave the descending channel and will be able to continue growing to 175.00 (Murrey level [7/8], W1) and 185.80 (area of July highs). The repeated consolidation of quotes below the central line of Bollinger Bands (147.60) will provide an opportunity to resume downward dynamics towards the targets of 131.25 (Murrey level [5/8], 38.2% Fibonacci retracement) and 125.00 (Murrey level [4/8]).

Technical indicators do not give a clear signal: Bollinger Bands are horizontal, Stochastic is preparing to leave the overbought zone and form a sell signal, and MACD is increasing in the positive zone. While maintaining a long-term downtrend in the SOL/USD pair, the continuation of the decline in quotes in the near future seems to be a more likely scenario.

Support and resistance

Resistance levels: 162.50, 175.00, 185.80.

Support levels: 147.60, 131.25, 125.00.

Trading tips

Short positions should be opened below the 147.60 mark with targets of 131.25, 125.00 and a stop-loss around 155.00. Implementation period: 5–7 days.

Long positions can be opened above the level of 162.50 with targets of 175.00, 185.80 and a stop-loss around 152.00.