My SOL Trading Perspective: Market Reaction at Support Levels

The latest movement in SOL has caught my attention, particularly how price is responding at key support levels. At $79.84, we’re seeing interesting market dynamics that suggest buyers might be stepping in where sellers have recently been aggressive.

Reading the Current Technical Setup

The recent selloff brought SOL down sharply, testing a critical demand zone that had been established earlier. What’s notable isn’t just the decline itself, but how the market reacted once it reached those lows. The price action shows rejection signals with longer lower wicks on the chart, indicating that buyers are defending these levels rather than sellers pushing through decisively.

Looking at the structure, we’re not seeing the kind of sustained breaking through we’d expect in a fresh downtrend. Instead, the follow-through selling has slowed considerably. This tells me that selling pressure is being absorbed, and price is stabilizing at support. The distinction matters: we’re likely seeing exhaustion of the downside move, not confirmation of deeper weakness.

Entry Zone Strategy for SOL

This is where my trading plan takes shape. I’m watching the zone between 79.50 – 81.20 as a potential entry area. This range sits right above where the market has already shown defensive strength, and price has demonstrated it will support here. The setup becomes interesting if we see another retest of this level with continued defensive price action.

The logic here is straightforward: demand continues to hold at these levels, and if sellers fail to break decisively below this support zone, we could see a controlled recovery unfold. The sharp initial selloff already cleared out weak hands and liquidity, so what follows could be measurable if buyers remain active.

Target Levels and Recovery Path

If the entry setup works out, I’m tracking multiple profit-taking levels:

• TP1 at 82.50: This represents the first relief area above support where we might see initial recovery
• TP2 at 85.00: This is the previous resistance level that price had broken through during the decline
• TP3 at 88.50: This is the higher liquidity zone that could provide stronger resistance if recovery gains real momentum

Each level has significance based on prior price action, and SOL would need to clear them sequentially for the larger recovery picture to develop.

Risk Management: Setting the Stop Loss

My stop loss sits at 78.80, which is just below the current support zone. If price breaks below this level and maintains that breakdown, the whole thesis fails. That’s when I’m out of the position. This placement respects the support level while giving the trade room to breathe without abandoning the analysis.

How This Setup Could Develop

This trade idea works under one primary condition: demand continues to hold and sellers fail to drive price materially below the lows that were just established. The rapid selloff that already occurred served a purpose—it cleared liquidity and tested conviction at these levels.

The current price action suggests absorption rather than another extended move lower. I’m basing this on structure and reaction, not speculation. My SOL trading watch remains active as long as these dynamics hold, and I’ll adjust if the market tells me otherwise.