SOL Trade Setups: Key Levels to Watch for Big Moves!

Solana has been on an impressive run, hitting a new all-time high (ATH) at $295. The previous ATH from 2021 at $260, along with the recent swing high of $264.63 (December 2024), are now acting as key resistance levels. Bulls are struggling to break above the $260 range and we’re seeing some bearish control as SOL trades below the weekly open, never a great sign for upward momentum.

Short Trade Setup

It’s looking like SOL could be in an ABC pattern, working on wave C. Here’s a potential short trade setup:

• Entry: Around $260 if price revisits that zone.
  

• Stop Loss: Above $270.
  

• Take Profit: $220, where strong support lies.
  

• R:R Ratio: About 3:1.
  

If you’re already short, congrats! If not, $260 could be your next chance to jump in.

Support Zone and Long Setup

There’s plenty of support stacking up between $220 and $217, making it a great zone to consider for a long position:

• Point of Control (POC): At $218.50, from the November-January range
  

• Fib Levels:
  

• The 0.786 trend-based Fib extension is at $220.23
  

• The 0.618 retracement (low of $169 to high of $295) is at $217.27
  

• EMAs: The 200 and 233 EMAs on the 4H chart line up nicely with the $217 level
  

• Channel Support: The median line from $264 to $169 also lands around $217
  

Long Setup Plan

• Entry: Ladder longs between $220 and $217
  

• Stop Loss: Below $217, maybe around $214
  

• Take Profit 1: $239 for a mid-range bounce
  

• Take Profit 2: Move your SL to entry and let the rest ride for bigger gains
  

Patience is Key

Whether you’re waiting for $260 to short or $220 to long, the setups are there, now it’s about watching the levels and being patient. Both trades offer solid risk-to-reward ratios, so no need to rush in.

Stay ready and let’s see how this plays out!