Current dynamics

The SOL/USD pair has been actively growing since the beginning of the current month amid the re-election of the Republican Party representative Donald Trump as the US President, however, after reaching historical highs in the region of 264.40 over the weekend, it began a correction, which is still observed. Quotes dropped to the support zone of 225.00–218.75 (Fibonacci correction 23.6%, middle line of Bollinger Bands, Murray level [6/8]), overcoming which will become a catalyst for a rollback to the targets of 187.50 (Murray level [4/8], Fibonacci correction 50.0%) and 171.88 (Murray level [3/8], Fibonacci correction 61.8%).

Technical indicators confirm the continuation of the upward trend in the market: Bollinger bands are directed upwards, MACD is decreasing, but remains in the positive zone, and Stochastic is directed downwards, but is approaching the oversold zone, which confirms the probability of the end of the downward correction. In these conditions, in the near future we should expect attempts to resume the growth of quotes: if the 250.00 mark (Murray level [8/8]) is broken, its targets will be the levels of 281.25 (Murray level [ 2/8]) and 300.00.

Support and resistance levels

Resistance levels: 250.00, 281.25, 300.00.

Support levels: 218.75, 187.50, 171.88.

Trading scenarios

Long positions can be opened above 250.00 with targets at 281.25, 300.00 and stop loss at 230.00. Implementation period: 5-7 days.

Short positions can be opened below the 218.75 mark with targets at 187.50, 171.88 and stop loss at 240.00.