Technical Analysis on SOLUSDC: Executing a 13.7% ROI Short Trade
Technical Analysis on SOLUSDC: Executing a 13.7% ROI Short Trade
On 29 January 2026 at 15:05, I closed a high-momentum SOLUSDC short trade on Hyperliquid, capturing a +13.7% ROI through disciplined, confirmation-based execution.
This post breaks down the technical rationale behind the trade, including entry, exit, and management logic.
Trade Summary
- Instrument: SOLUSDC
- Position: SHORT
- Leverage: 5×
- Entry Price: 123.03
- Exit Price: 119.60
- P&L: +13.7%
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 downside momentum was accelerating.
Key technical factors:
Clear Rejection from Highs
SOLUSDC failed to hold elevated prices after a strong push higher. Rejection from the highs signaled buyer exhaustion and opened the door for a momentum reversal.Decisive Break of Intraday Structure
Price cleanly broke below short-term structure on the execution timeframe, confirming the transition from expansion to rotation lower.Strong Bearish Momentum Confirmation
Bearish continuation candles printed with increasing efficiency, confirming active seller control and validating the short bias.
This was a reaction to confirmed price behavior, not a prediction.
Exit Strategy: Covering into Expansion
The position was managed as a pure intraday momentum short, prioritising execution quality and capital protection.
Exit at 119.60 into Weakness
The trade was closed as price expanded aggressively lower, locking in gains ahead of potential demand absorption or short-term relief bounce.Risk Discipline with Leverage
Even with strong momentum, the focus remained on disciplined execution. At 5× leverage, consistency and capital preservation always take priority over squeezing the last ticks.
Key Takeaways from the Trade
- Momentum shorts perform best after structure failure
- Waiting for confirmation reduces drawdown and execution stress
- Strong moves don’t require over-management — decisive action is enough
As always:
Trade what price confirms. Execution beats prediction.
More real executions and technical breakdowns coming soon.