SOL/USDT has started to pull back from the $205.00 resistance level and is currently trading at $197.65, down by about 1.06%. Here’s what this may imply:

Key Observations

1. Decline in Price:

• The price has dropped below the immediate support around $200.00. This could suggest further downside potential if it fails to reclaim that level.

2. RSI Levels:

• The RSI(6) has dropped to 27.04, which is in the oversold region. This might suggest a temporary pause in the selling pressure or a possible short-term bounce.

3. EMA Levels:

• The price is currently below the EMA(7) and EMA(25), which is showing signs of a short-term downtrend or consolidation.

4. Support Levels:

• Immediate support appears around $189.20. This level might act as a base if the current downtrend continues, providing a retest opportunity.

Retest and Shorting Strategy

• Retest Level: Watch for a retest of $200.00 or $205.00. If the price fails to break back above these levels and shows bearish signals (e.g., rejection candles or a lower high), it might confirm continued downward movement.

• Short Entry Signal: A failed retest at $200.00 with decreasing buying volume or reversal patterns could be a short opportunity.

• Potential Support Targets:

• $189.20: First support level; could act as a short-term floor.

• $170.91: A more significant support level for a deeper pullback.

Summary

• Short Trigger: Failed retest of $200.00 or $205.00 resistance.

• Target Levels: $189.20 initially, with a secondary target around $170.91 if the downtrend persists.

• Watch RSI: If RSI remains oversold but fails to recover, it might support further downside.