SOLUSDT | T.A.P.E. Method Breakdown: Has Solana Bottomed Or Not?Let’s walk through the T.A.P.E. Method I use to read every chart. This isn’t about price alone — it’s about structure, behavior, pressure, and clarity. Solana is at a critical decision point. I’ll explain what smart money is likely seeing, and how I’m approaching this chart with logic — not guesses.
T — Territory (Know the Zone Before You Clone)
I started with the Fibonacci retracement from the all-time low to all-time high. It’s clear SOL is reacting near the golden pocket zone — a historically strong area for reversals.
We also saw strong support at the 2618 extension after the first major leg down. This alone gave an 87% rally. That’s how clean setups work — clarity beats complexity.
Market structure remains bullish on higher timeframes. Yes, we’ve had a wick below prior lows, but no clean break — structure still holds for now.
A — Activity (Price Behavior Over Indicators)
I don’t use RSI or crossovers. I look at behavior.
From the local low to the swing high, the retracement again held the 618 zone, showing buyer defense.
However, on a second leg down, SOL broke below the 2618 level — a key difference. This shift in behavior is what I’m watching closely. Price pushed past 236 on the retrace — that can hint at a stronger bullish leg forming.
But...
P — Pressure (Pain Points and Traps)
Here’s where most traders get caught.
Early longs that entered during the last local rally are underwater. Especially those who bought around the value area high — they are likely hoping to exit break-even, adding sell pressure.
This is classic: a liquidity zone stacked with pain.
That pressure zone sits just above the current range, near $153–$164. If we get a strong move into that zone without structure, I’ll be watching for short setups — not breakouts.
E — Execution (No Setup Is Complete Without a Plan)
Here’s how I’m structuring it:
No-trade zone: Where we are now. No edge here.
Short area 1: $153 — trendline + resistance
Short area 2: $164 — invalidation just above
Target: Sweep lows + retest $138/$128
Invalidation: Clean breakout above $164 with structure
Support zones to watch:
$138 (value area low)
$128 (786 Fib)
$122 (old structure pivot)
If price forms structure and pushes through the golden pocket cleanly, then I shift bias. But for now — pressure remains to the downside.
Summary & Context:
This T.A.P.E. breakdown keeps me from chasing noise and protects capital. Too many early longs, weak structure, and clean resistance zones make this a potential short setup — not a long.
If price flips those resistance zones into support with structure, I’ll adapt. Until then: Plan the move. Let the market prove.
Disclaimer:
This is not financial advice. All opinions are my own, based on chart behavior and analysis. Do your own research. This is a paper money breakdown shared for educational purposes only.
