$SOL has broken out from a brief consolidation period (likely a bull flag or pennant) on increasing volume, confirming buyer commitment. The move lacks the exaggerated wicks of a fakeout, suggesting genuine buying pressure. The prior consolidation now acts as immediate support. A hold above this zone could force recent shorts to cover, adding fuel to the upward move.
Key Levels:
· Breakout/Support Zone: $123.40 - $123.60 (This is the critical area; holding above it validates the breakout).
· Resistance (Previous High): ~$124.80 (First major test).
Trade Plan:
· Optimal Entry: $123.65 - $123.80 (Pullback to the breakout zone for better risk/reward).
· Aggressive Entry: On a confirmed hold above $124.00 with momentum.
Targets:
· T1: $124.80 (Liquidity at prior high, partial profit zone).
· T2: $125.50 (Measured move extension).
· T3: $126.20 (Next projected resistance).
Risk Management:
· Stop Loss: $122.90 (Placed just below the consolidation low and breakout zone).
· Risk/Reward (to T1): ~1:1.5 | (to T3): ~1:3.2
Thesis Invalidation: A sustained break and close below $123.40 would signal a failed breakout, negating the immediate bullish premise.
