Solana Buying Opportunity in December?

As the crypto market undergoes a broader correction, the price action of Solana has established a critical resistance zone that could signal new buying opportunities.

The key question remains: will Solana break through this zone, or will the correction deepen? A closer look at its price action and support levels provides some clarity.

4-hour time frame analysis

SOLUSD - 4 Hour Time Frame

In the four-hour timeframe, Solana’s price movement reveals encouraging signs. A recent bearish retracement followed an impulsive upward surge, catalyzed by the announcement of the U.S. presidential election results.

This retracement has been notably slow, indicating sustained bullish momentum. The emergence of bullish market structures further strengthens the case for considering buy positions at key levels.

Solana price target

Identifying potential buy opportunities requires more than just technical analysis—it demands confirmation. The resistance zone is pivotal here; for bullish momentum to be confirmed, the price must close above the upper boundary of this zone on the four-hour chart.

Waiting for such a breakout is essential to minimize risks and ensure a stronger setup. Although an exact Stop Loss level cannot yet be determined, a sound approach involves observing the price’s interaction with the Order Block.

If the price bounces from this zone and successfully closes above resistance, the Stop Loss can be set just below the nearest internal low. This method provides a practical buffer against downside risks.

Profit-taking should focus on levels of Buy-Side Liquidity, which often act as magnets for significant price action. These levels serve as ideal milestones for locking in profits while maintaining exposure to further potential gains.

Despite the ongoing market correction, Solana exhibits signs of bullish resilience. Traders should monitor the resistance zone closely and await a confirmed breakout before entering long positions.

By employing disciplined risk management, including strategic Stop Loss placement and targeting key liquidity levels, traders can effectively navigate this volatile market. As always, success hinges on adherence to a well-defined and patient trading strategy.