Chart analysis for SOL/USDT.

Hello friends, how are you all? Hope you all are doing well. Today I think Solana gives me a good opportunity for placing a trade. Now let's explain why I'm thinking of taking this trade to the downside.

Solana is around on its 52-week high. In late December, we saw the price of the Solana touched around 126. So, that are ( 118 to 126) is a good resistance for taking a short trade.

According to this resistance, the price might go back down to at least 103 to 93. There are many reasons to think that the market will go down. So, Let's break down the strategies.

On Feb 15 when the price touched 118 it immediately rejected to 104. When I'm writing the post the price is trading into the 111 to 113 zone. I see the price has been rejected from 113$ multiple times.

When I tried to understand the market condition I found the best trading strategy. Which is called Head and shoulder trading strategy.

This trade makes me comfortable because of the resistance. First of all, it's on the resistance level, secondly, it is making a reversal pattern.

Now I will use some indicators to get more confirmation. I will use 100MA, RSI and At last Volume. If we get more confirmation our trades result will be more satisfactory.

if we look at the volume, the volume goes lower and lower. That's a positive sign for taking a short trade. Although the market is still on the above of movie average. I think that will be broken if the market goes lower direction.

On the RSI, we see the line touched the upper band which acts like a resistance. Combining them all I think I can now enter the trade. This should go in our favor.

I will take this trade at around 111 to 112 and my stop loss will be in on 119$. And if the market goes down I will remain with my position. Because most of the time when the market gives this type strategies it gives much dump.

Let's talk about my previous trade JUP/USDT. Jupiter has broken the trend line, Now I think this will be the best buying price for now. Hope this trade also will to my favor.

As I said in my previous post, I'm not a professional trader. Even my trades are not always correct. Sometimes I had to stay ok with losses. Take this post as education purpose. Do your own research then dive into the trade. That's for today. Hope you found some valuable information here. Thanks.