Technical Analysis on SOLUSDC: Executing a 9.7% ROI Short Trade

Technical Analysis on SOLUSDC: Executing a 9.7% ROI Short Trade

On 29 January 2026 at 14:58, I closed a successful SOLUSDC short trade on Hyperliquid, capturing a +9.7% ROI through disciplined, momentum-based execution.
This post breaks down the rationale behind the trade, including entry, exit, and management logic.

Trade Summary

• Instrument: SOLUSDC
• Position: SHORT
• Leverage: 5×
• Entry Price: 123.03
• Exit Price: 120.59
• P&L: +9.7%

Technical Analysis: Why I Entered the Short Trade

The short entry at 123.03 was taken after clear confirmation that bullish continuation had failed and momentum was shifting lower.

Key technical factors:

1. Failure to Hold Local Highs
   SOLUSDC failed to sustain higher prices after an impulsive move up. Rejection from the highs signaled buyer exhaustion rather than continuation.

2. Break of Intraday Structure
   Price lost short-term structure on the execution timeframe, transitioning from expansion to rotation lower. This structural break provided confirmation for the short.

3. Momentum Shift in Favor of Sellers
   Bearish continuation candles appeared with increasing efficiency, confirming that sellers were in control at the point of entry.

Exit Strategy: Covering into Weakness

The trade was managed strictly as an intraday momentum short, with a focus on execution quality and risk discipline.

1. Exit at 120.59 into Weakness
   The position was closed as price expanded lower into short-term weakness, locking in profits ahead of potential demand absorption.

2. Leverage-Controlled Risk Management
   At 5× leverage, protecting capital and maintaining consistency takes precedence over maximizing extension. The exit respected the original plan and avoided overstaying the move.

Key Takeaways from the Trade

• Shorts work best after structure failure + momentum loss
• Confirmation-based entries reduce drawdown
• Execution quality matters more than extension

As always:

React to what price confirms. Ignore what it suggests.

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More real executions and technical breakdowns coming soon.