Have you noticed how retail traders always panic-sell the exact bottom right before a massive short squeeze? Most people lose money because they chase the dump, get trapped in late shorts, and then watch in frustration as the market aggressively reverses against them. It is the classic trap of trading emotion instead of looking at key liquidity levels.

Look at how $SOL behaved after hitting that $60 floor. Instead of collapsing further, it ripped over 25% higher and is now fighting to reclaim the critical $75 support zone. This move was fueled by rising open interest, showing that aggressive buyers are stepping in to trap overleveraged short sellers, much like the accumulation patterns we often see play out on $BTC.

To trade these reversals successfully, you need a structured approach. First, wait for the price to reclaim the breakdown level on high volume rather than buying the initial dip. Second, monitor the open interest to confirm if the move is driven by new money. If the price holds above $75, it invalidates the bearish thesis and sets up a clean entry with a tight stop just below the reclaimed level.

Where do you think this goes from here?

#Solana #CryptoTrading #TechnicalAnalysis