Technical analysis by SwingSamurai_QMA about Symbol SOL on 12/7/2024

Solana (SOL) has been on a wild ride, recently revisiting its all-time high. But don't break out the champagne just yet! A critical resistance level has emerged around $240, acting as a major roadblock to further gains. Here's the breakdown: $240 Resistance: This price point is a significant hurdle. Multiple attempts to break through have been rejected, indicating strong selling pressure. A decisive daily close above $240 is crucial for a renewed bull run. Downtrend Potential: Until that breakout happens, SOL appears to be in a downtrend. Expect continued downward pressure, with a potential target of $180. This area could provide strong support, setting the stage for a potential bounce. Trade Idea: Long Oppurtunity: Wait for a confirmed daily close above $240 before entering long positions. Target the previous all-time high and beyond. Short Opportunity: The current technical structure presents a compelling shorting opportunity for traders with an appropriate risk appetite. Entry points could be considered at the current price or on any failed attempts to break above $240. A prudent stop-loss would be placed above the $240 resistance level, while a price target of $180 is reasonable. Key Indicators to Watch: Daily Close: Pay close attention to the daily closing price. A close above $240 is the bullish signal we're looking for. Volume: Increased volume on a breakout above $240 would add conviction to the move. RSI: Monitor the Relative Strength Index for signs of bullish divergence, which could foreshadow a price reversal. Disclaimer: This is not financial advice. Always do your own research and manage your risk accordingly.