In yesterday's analysis of Bitcoin, we provided insights into a short-term price outlook.

Now, another cryptocurrency presenting a favorable risk-to-reward ratio is Solana, which closely follows a similar market trajectory as Bitcoin. Traders should focus on specific parameters that have the most significant impact on Solana's price movements.

Daily time frame analysis

SOLUSD - 1 Day Time Frame

On the daily chart, Solana has formed three relatively equal highs, which represent a crucial level of buy-side liquidity. These highs accumulate stop-loss orders from sellers, particularly from non-commercial market participants and small speculators.

Commercial traders, who tend to be the most profitable, are expected to enter buy positions at these liquidity levels, aiming to secure profits from large-volume counterparties.

Since retail traders have limited access to comprehensive market data, we can’t definitively confirm commercial traders' buy positions until a COT (Commitment of Traders) report is released.

However, until then, it is essential to monitor specific algorithmic parameters to stay positioned until the price confirms a lower probability of upward movement.

When to buy Solana?

Traders can consider entering buy positions at current levels, as the price has respected a key support zone and the order block. To maintain this position, the price must continue holding above the blue-marked support zone on the chart.

A stop-loss order should be set below the internal low, while the take-profit target can be placed at buy-side liquidity levels.

For traders with a more aggressive risk appetite, the stop-loss can be adjusted to a higher internal low to potentially capture more upside.