Fast Hitting Trades Attractive But May Be Painful

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SOL/USD occupies the lower realms of its value range still, and has even produced a slight incremental climb higher in the past day which may attract thrill seekers.

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SOL/USD is trading slightly above the 52.0000 level as of this writing. This past weekend however, Solana spent some of its time traversing near the 49.0000 juncture as some early selling pressure developed on Saturday and shadowed the broad cryptocurrency market until Sunday morning. Since then, a slight incremental climb has been achieved and traders may find the current conditions attractive.

As a warning, SOL/USD still is within the lower tier of its long term price range, Solana is traversing prices not seen in earnest since August of 2021. Yes, on a spike lower when violent selling hit the digital asset market the 12th of May, SOL/USD did penetrate the 36.0000 ratio briefly. While some may point to the gains SOL/USD has made since then and proclaim a victory and a parade higher to gain momentum, these people will be in short supply.

Day traders need to remain cautious with SOL/USD, and the best recommendation may be to seek fast hitting trades using risk taking tactics which cash out of the market quickly while seeking to ‘scalp’ the cryptocurrency market.  Gains have been seen in the major counterparts of Solana also, but the reversal higher across the digital asset board could prove to be short lived. Nervous conditions remain and a true breakout higher technically has not been spotted as a trend.

Using take profit orders to accomplish a winning bet on upside price action to challenge nearby resistance may feel worthwhile. However, stop loss risk management should be fully in place, just in case a sudden rush of selling is about to emerge again. Resistance near the 52.7500 level looks like it may prove durable. If support near the 51.7500 mark suddenly finds that it is vulnerable SOL/USD could find lows being tested rather abruptly again.

Behavioral sentiment in cryptocurrencies has proven a difficult battle; reminders of the long term bearish trend are still in clear sight.  While some speculators may feel the need to look for reversals higher, cautious traders who are still skeptical of the cryptocurrency market may believe remaining a seller of SOL/USD after slight climbs have been seen, is a way to ignite selling positions while looking for support levels to be challenged again sooner rather than later.

Solana Short-Term Outlook

Current Resistance: 52.7500

Current Support: 51.7100

High Target: 56.0600

Low Target: 48.8800

SOL/USD

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