Current trend

This week, the SOL/USD pair had ambiguous dynamics: amid investor activity caused by fears of a recession in the United States, quotes reached seven-month lows around 109.90, but have now regained a significant part of the lost positions.

The key for the "bulls" is the central line of Bollinger Bands around the 167.00 mark, consolidation above which will allow the current downtrend to change, and quotes will continue rising to 187.50 (Murrey level [7/8]) and 200.00 (Murrey level [8/8]). The most important level for the "bears" is 132.00 (38.2% Fibonacci retracement), which has already been unsuccessfully tested by the price several times over the past three months. After consolidation below it, the decline will continue to 112.50 (Murrey level [1/8], 50.0% Fibonacci retracement) and 100.00 (Murrey level [0/8]). This scenario of the pair's movement in the near future seems to be the most likely.

So far, the formation of a downtrend continues, which is confirmed by the downward reversal of Stochastic and the transition of MACD into a negative zone. Stochastic is also approaching the overbought zone, indicating a limited potential for corrective growth.

Support and resistance

Resistance levels: 167.00, 187.50, 200.00.

Support levels: 132.00, 112.50, 100.00.

Trading tips

Short positions can be opened below the 132.00 mark with targets of 112.50, 100.00 and stop-loss of 143.50. Implementation period: 5–7 days.

Long positions can be opened above the level of 167.00 with targets of 187.50, 200.00 and stop-loss of 155.00.