Solana

May 25, 2025 at 19:44

Solana Price Action: Watch for Reversal at Critical Zones Amid Anticipated Volatility

Colleagues, as the day wraps up, here's a comprehensive review—prepare yourself for volatility! **Review for $SOL on a 4-hour chart:** The price has confidently approached the weak maximum zone around $182–184, from where a seller's reaction is anticipated. A false breakout above this zone is expected, followed by a reversal downward. Evidence of weakness on smaller timeframes could lead to a pullback towards $165–168$, where the asset's further trajectory will be determined. **Alternative:** If the zone $165–168 is not held, there's a high likelihood of decline to the next liquidity area around $147–150$, where buyer reaction at the return to this range will be of interest. **Bullish Scenario:** If the price consolidates above $184 and breaks the 'weak high,' growth may accelerate, with immediate targets around $188–190. **Currently, the priority is to establish a short position confirmed by the reaction in the $182–184 zone.** Prepare accordingly and monitor the reactions closely for strategic moves.

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Analysis

The current technical setup of Solana ($SOL) indicates a critical zone at $182–184, where the price is approaching a weak maximum, suggesting an imminent seller reaction. The anticipation of a false breakout above this zone implies that traders expect a temporary breach followed by a reversal, especially if smaller timeframes show weakness. This kind of setup often targets a retest of support levels, with $165–168 being the immediate potential downside. Should this zone fail to hold, the next significant support lies around $147–150, which is a liquidity hotspot that could attract buyers, leading to a possible bounce.

On the bullish side, if Solana manages to close above $184 and break the weak high, it could trigger an acceleration of upward movement toward $188–190. This signals that the market may be biasing towards short-term strength if the breakout occurs with confirmed volume and momentum.

Overall, the current analysis favors a cautious approach with a preference for short positions, contingent upon a confirmed reversal at the $182–184 resistance zone. Monitoring the reactions in this zone will be crucial in determining the next move.

Recommendation

Given the current technical signals, executing a short position near the $182–184 zone appears prudent, especially if the support at $165–168 fails to hold. It is vital to confirm weakness on smaller timeframes before entering this trade to mitigate risk. If the price instead moves firmly above $184 and sustains above the weak high, reassessment for long opportunities may be warranted, focusing on the targets around $188–190.

Practitioners should closely monitor the volume and price action in these key zones, ready to adapt their strategy if the market breaks out of the expected patterns. Stop-losses should be considered just above the $184 zone for shorts or below $165 if initiating longs on signs of reversal. Caution remains paramount during periods of high volatility, and traders should maintain disciplined risk management practices.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.