Friends, pay attention! A major piece of news has just come across the ocean that could explode the market, directly affecting our crypto wallets.
News: A 'ticking time bomb' is ticking away
Last night, the popular candidate for the next chairman of the Federal Reserve, Governor Waller, made a statement. This guy is known as a 'dove', and he directly said: the job market is very weak, and the Federal Reserve still has room to cut interest rates!
He supports continuing to cut interest rates, aiming to bring them down to a 'neutral level', which can be simply understood as neither too tight nor too loose.
He is not in a hurry to act, meaning he will take his time, but the direction is clear — to inject liquidity!
He promised to emphasize the 'independence' of the Federal Reserve to Trump. You should know, Trump complains all day about the Federal Reserve's interest rate cuts being too slow and always wants to meddle. Waller is making a statement in advance: don't rush me, I know what I'm doing.
Bai Yue believes that the Federal Reserve's interest rate cuts mean that the 'tap' of the global market will be loosened further, and more money may flow out of traditional markets in search of investment opportunities. Historically, expectations of liquidity easing have often been a strong catalyst for high-risk assets like Bitcoin, Ethereum, and SOL. This news is akin to a 'signal flare' lurking in the distance, which is definitely a long-term positive.
Technical aspect: The current reality is a bit 'bony'.
However, let's not get too excited too early. Looking at SOL's market, the reality is a bit 'cold'.
Price stuck: currently at $123, just stuck at an awkward position. Upwards, $130-$132 is a clear 'rebound resistance line', pressing down like a ceiling. Weak indicators: the technical indicators below, the yellow and white lines are below the 0 axis, still in a 'death cross' trend, indicating that the bearish forces are currently dominating. Insufficient volume: The trading volume has not increased, indicating that most funds are observing, and no one dares to take the lead in charging ahead.
Bai Yue feels that there is a significant long-term benefit waiting, but short-term technical trends tell you that market sentiment is still very low, and the bears have not retreated.
What should retail investors do next?
If you are aggressive: believing in the power of the Federal Reserve's easing, thinking that SOL has fallen enough. Then you can try to catch a rebound near the current price of $123 with a very small position. Remember, discipline is key! A stop-loss must be set, which can be placed just above the previous low at $110, around $115.
If you are conservative: feeling that the trend is not clear yet and do not want to catch a falling knife. Then just honestly observe and wait for two signals: either SOL's price strongly breaks through and stabilizes above the $130-$132 resistance level, indicating that the bulls are truly gaining strength.
My personal opinion and operational advice
My view is: a short-term bearish fluctuation, and there's no need to be overly pessimistic in the medium to long term. The market is currently waiting for clearer signals of interest rate cuts from the Federal Reserve, and it might also be waiting for the crypto market to find a decent bottom.
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