#Solana’s price is at a key level. #Traders must decide whether to short it to $150 or hold for a potential rise to $350 based on current #trends.
Published: Feb 6, 2025 at 10:30 PM
Updated: Feb 6, 2025 at 10:21 PM
- Solana’s price is testing a crucial support level and could either drop to $150 or rise to $350.
- Traders have two options: short Solana if it breaks support or goes long if it holds its ground.
- Fibonacci levels suggest key price targets of $150 on the downside and $350 on the upside for Solana.
Solana (SOL) is at a critical point. Traders face a decision to either short its price to $150 or go long, targeting $350. On February 5, 2025, SOL was trading at $198.79, experiencing a 2.28% decline. Technical analysis by Ali (@ali_charts) shows that the next few moves could significantly influence Solana’s price trajectory.
The chart uses a parallel channel to track Solana’s price. This channel consists of support and resistance levels guiding Solana’s movement. As of now, SOL tests the lower boundary, which could signal a reversal or further decline. If the support holds, Solana could rally to $350. However, if it breaks the channel, a bearish move toward $150 could follow.
Ali (@ali_charts) has outlined two major trading strategies. The first is to short Solana, targeting $150 if the price falls below the channel’s support. This would require the price to break key levels, including a Fibonacci retracement at $162.30. If this happens, the downward move could accelerate.
The second strategy is based on the belief that Solana will hold its support. In this case, the price could bounce back, reaching as high as $350. The upper channel boundary aligns with this potential upside target. Traders could take a long position with hopes of riding this wave if the price maintains its current support.
The Fibonacci levels on the chart provide insight into potential price action. A level of $173.84 (0.786 retracement) may serve as short-term support. If Solana dips below this, the next key level to watch is $162.30 (0.618 retracement). These zones could signal a deeper retracement before any recovery.
On the upside, the chart suggests that if Solana breaks its resistance at $261, the price could hit $317 and potentially $351. The Fibonacci extension levels of 1.272 ($317) and 1.414 ($351) point to significant bullish targets for those opting for a long trade.
The market is divided on Solana’s next move. While some traders believe in the upward potential, others are more cautious. Many advocates of shorting suggest setting stop losses to manage risk. Conversely, the long position supporters are betting on Solana’s continued upward momentum, maintaining faith in the parallel channel’s support.
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