Once again, in this lower time frame, the $110 – $120 levels emerge as the key resistances to watch. The first of these levels corresponds to the 200-day EMA, while the second is a former demand zone that the market will likely retest in the next few weeks.
The RSI is as bullish as it gets in the daily time frame, as the oscillator rose to 66. This is the highest level it has reached since January. In addition, this tends to be considered as a buy signal, especially if other indicators are signaling a potential cycle bottom at $78.
This is not necessarily the best time to take a long position, as the price still needs to climb above the previous high at $96. We could expect some turmoil at that point, and a pullback to $90 again.
That would be the ideal entry for a long position. This trade would offer a 4.7x risk-reward ratio if the stop price is set at around $84 to give the price enough breathing room.
Buy Signals Pile Up in the 4H Chart
Our system’s signals for Solana have been spot on lately. The buy signal we shared in early April has yielded an 8% return thus far. Right now, we could be about to get another buy signal in the daily time frame if today’s green candle closes as is.
