SOL dropped to 72.28 this morning, then started to V-recover. Now at 75.55, it's bounced back about 4 points intraday.
Let me point out a few interesting things.
First, this drop from 79.45 happened in just a few hours, with volume concentrated during the sell-off. However, around 72, there was nearly $32 million in buy orders, which isn't retail level volume—clearly, institutions are stepping in to support the bottom.
Second, the 4-hour trading volume is only 59% of the daily average, indicating that both bulls and bears are on the sidelines after that drop. If the 70-72 range holds, we can pretty much confirm a short-term bottom. If it doesn't hold, the next level to watch is 65.
Thirdly, my own take is that the value proposition for SOL is starting to show up. On-chain activity hasn't collapsed, the ecosystem is still running smoothly, and the sell-off feels more like a collective liquidation of long positions, not a fundamental issue. This kind of drop happens fast and can recover just as quickly.
Not bullish or bearish, just for your reference. If it can hold around 72, it might be worth a short-term look. If it breaks below 70, just wait it out.
You guys take it easy, I'm gonna keep my eyes on the charts.