Solana: Mapping out profitable entry and exit triggers for SOL traders
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Solana (SOL) bulls had to chin up to yet another decline post a broader market sell-off over the last month. In its south-looking trajectory, SOL poked the $35-zone for the first time in over nine months.
As the alt continues its squeeze between the falling wedge, the next few candles would be critical to determine a breakout rally.
A close beyond the pattern would open up short-term buying opportunities, provided the bulls ramp up the buying volumes. At press time, SOL traded at $39.27, up by 6.23% in the last 24 hours.
Source: TradingView, SOL/USD
SOL’s devaluation from the $85-mark made way for a bear run that accounted for a 62.5% weekly decline (5-12 May). Consequently, it pulled to touch its nine-month low on 12 May.
As the selling pressure heightened, the alt has been depreciating between the bounds of a falling wedge while approaching its ten-month support at the $38-mark.
A potential bounce-back alongside the reversal pattern could give the bulls a much-needed hope to break above the wedge. More often than not, a falling wedge setup a followed by an up breakout.
However, the declining volume trend could play out in favor of the bears in the coming sessions. Also, the basis line (green) of the Bollinger Bands (BB) still looked south and affirmed the bearish edge.
A close beyond the wedge would expose the alt to test the basis line of the BB. The bulls have not found a close above the basis line in nearly two months. Any close beyond this line could serve as an entry trigger with a take-profit level in the $50-$52 range.
Should the buyers dwindle, any pullbacks could provoke a down breakout
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