When Should I Buy Solana?

In our continued effort to offer objective and well-rounded insights, today’s analysis focuses on Solana.

Although the cryptocurrency remains within an internal bullish structure, recent price action indicates that the situation may not be as straightforward as it appears. In fact, the current setup could present an opportunity for short trades.

Solana technical analysis

SOLUSD - 1 Day Time Frame

To start the analysis, it’s essential to define the working timeframe. We’ve selected the daily chart, as it provides the clearest perspective on the critical levels outlined below.

As noted earlier, the price action lacks clear direction. While Solana is forming internal bullish structures, the overall picture remains ambiguous.

During the recent correction, Sell-Side Liquidity (SSL) was targeted and swept. Typically, such a liquidity event is followed by a strong, impulsive move to the upside.

However, in this case, no such bullish reaction occurred—suggesting that the resistance zone, highlighted in orange on the attached chart, is currently acting as a firm ceiling for price movement.

Solana price target

For traders looking to hedge existing long positions or capitalize on short-term downside potential, this setup offers a possible entry. A Stop Loss (SL) can be placed just above the internal lower high, as indicated on the chart.

If the market unexpectedly resumes upward momentum and closes above the resistance zone, it would be prudent to partially or fully exit short positions in order to preserve capital and avoid unnecessary losses.

As always, our target zones are aligned with Sell-Side Liquidity levels—areas where stop-loss orders are likely accumulated and which tend to act as price magnets. These levels serve as logical zones for taking partial profits, helping to lock in potential gains while reducing risk exposure.