*SOL – Daily timeframe reaches 100.00 for the first time ever.

Today, for the first time since the creation of Solana (SOL), it will try to rally above 100.00. In a sea of red altcoins, SOL has been standing out as one of the only green cryptos, as it rallies further above the Fibonnacci Golden Ratio (as already discussed in a previous article a few weeks ago).

SOL: One of the Leaders

The price action in SOL has solidified the cryptocurrency as one of the leaders in the altcoin space – so much more if it rallies higher than 100.00. SOL has been trading at all-time highs for weeks now, since it broke out of a major resistance level of 60.00 on August 16, 2021. Since then, it has never fallen below this price level. Now, SOL is in the process of breaking another major resistance level at 100.00, a whole number that represents a strong psychological resistance for most traders. Whole numbers usually act as price rejection areas, because, by their very nature, they become easy profit targets for most people.

Time to take PARTIAL profits.

As such, if you were able to buy SOL early, now would be a good time to be taking PARTIAL profits (maybe 20-30%). Partial only, because there are no indications yet that this bull run for SOL is going to end. Keep your core position for SOL, as it has proven to be one of the leaders with actual fundamentals in the cryptospace.

How to participate if you do not have SOL yet?

Usually, at this point, I would suggest just sitting it out, since the price has already run up so much in a short span of time. Just for the month of August, it has risen almost 200%. But I would make an exception in the case of SOL. If you really want to participate in this explosive rally, I would suggest a quick momentum trade. SOL has already exhibited a momentum flag pattern with a buy trigger, and moreover, its Average Directional Index is showing no signs of slowing down either.

This flag pattern is usually a 1-3 day pause in the momentum move before resuming the strong rally the next day. This is clearly seen in the SOL chart for the past 2-3 days. It exhibited a strong rally from 70 to 90+ before taking a pause in this area for 2-3 days, in the attempt to climb above 100.00.

In anticipation of this rally, you could take a momentum position at the high of the flag pattern. Put a very tight stop at the low of the flag formation. Risk only 0.25-0.50% of your portfolio for this trade. The target price would be 110 to 120. Immediately take partial profits on the way up, and sell on strength, as this is only a quick momentum trade.

SOL Trade Summary: Buy the Momentum Flag Pattern

Buy:                 98 to 100

Take Profit:   110 to 120

Stop Loss:      85.50

VAR:               0.25 – 0.50 only

Always manage your risk properly. Compute the correct position sizing, based on the size of your portfolio. Since you are already late in entering the big move, you should be proportionally faster in taking profits or cutting losses. This trade idea is negated if SOL does not hold up above 100, or if it suddenly sells down and exhibits major institutional selling. This is usually accompanied by an unusually large trade volume along with a red candle or other bearish patterns.