Since mid-November last year, the price of Solana has been following a bearish trend, a pattern that might deter some investors. However, this downward trajectory has also created opportunities to re-enter the market at more attractive valuations.

Recent price movements have validated this strategy, presenting a promising trading setup. In this analysis, we will explore this opportunity in detail and outline a risk management plan, including criteria for partial exits to protect your capital.

4-hour time frame analysis

SOLUSD - 4 Hour Time Frame

The recent correction pushed Solana's price below a critical Sell-Side Liquidity level, effectively clearing a key barrier that previously limited full-volume buy positions. This liquidity sweep enabled commercial participants to establish positions, and the subsequent rapid price recovery turned the former resistance zone into a vital support level.

This newly established support now serves as a strong foundation for further bullish momentum.

Solana price target

Effective risk management is essential as the trade develops. The Stop Loss order could be placed strategically below the internal low, as shown on the attached chart, to guard against unfavorable price movements.

If the price closes below the support zone on the four-hour timeframe, it would be wise to sell a portion of the position. This approach minimizes potential losses while locking in any realized gains.

For the remaining volume of the position, the focus shifts toward higher price targets. The primary objective will be to capture profits as the price approaches one of the key Buy-Side Liquidity levels.

This strategy ensures a disciplined balance between preserving capital and maximizing potential gains, aligning with best practices in trading.