Solana

Breakout or Rejection Ahead?

90
At the moment, we are observing a test of the upper trendline, which has previously acted as strong resistance. This setup suggests two possible scenarios:

🔹 Bullish Breakout:
If the price manages to break above the channel with volume confirmation and retests the trendline as support, this could signal a trend reversal and open room for a strong upward movement.

🔹 Bearish Rejection:
If the price gets rejected at this level, we could see a continuation of the bearish trend within the channel, potentially targeting the lower boundary once again.

Now the question is: how to profit in both scenarios?

I am entering a short position, if the price breaks out of the descending channel and the upper trendline (previous resistance) is successfully retested as support, I will reverse my position from short to long.

Write in the comments how you would approach this setup 😊

Penafian

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