Friends, I am Qi He. I just came across a piece of news that really caught my attention: a Meme coin called JELLYJELLY in the Solana ecosystem surged by 87% in just one day! Its market cap has reached nearly 85 million USD. The hype is so palpable that I can almost smell money through the screen. But then I looked at SOL's own performance, and my heart sank. This trend and the hotness of the ecosystem are like summer and winter, respectively.
News:
The 87% increase of JELLYJELLY in one day indicates that the excitement in the Solana ecosystem is still alive, and money is looking for opportunities. However, this is a celebration of 'ecosystem coins' and does not directly translate to SOL's price soaring immediately. This is something to be cautious about, as funds may temporarily withdraw from mainstream coins to speculate on meme coins, putting pressure on SOL itself. This is called 'sector rotation,' and it is a common tactic used by speculators.
Technical Analysis:
From the 4-hour chart, the market was rising before, but now it's encountering trouble. The critical level at $144 is like a large iron plate pressing down, and it hasn't been breached several times. Below, $134 is a key step, and $128 is a strong support like a lifeline. What's even worse is that the MACD indicator, with the white line and yellow line both falling below the zero axis, has formed a 'death cross'. This is a warning light for short-term 'braking' and 'reversing', indicating that bearish strength is increasing.
Qi He's Personal View:
I believe that in this current market of 'weak indicators and hot news', the main force is more likely to choose 'to crouch first, then jump'. Directly breaking through 144 requires huge capital, and against the backdrop of the MACD death cross, the difficulty is too high. A greater possibility is to first pull back down and test the support strength of 134 or even 128. As long as these two positions can hold firmly, forming a 'double bottom' or 'bottom divergence', then with the continued heat of the Solana ecosystem, the subsequent rise will be healthier and stronger.
What should the player do now?
If you haven't caught up, don't rush in a frenzy to chase highs; what you see as prosperity may be a smokescreen for others to withdraw. If you are already in, make sure to set your profit-taking and stop-loss levels properly. Remember, only what you can cash in is called money.
For SOL: Remember the two key numbers 134 and 128.
If you are out of position: Don't rush in. Be patient and wait for a pullback. If there are signs of a clear halt in decline and shrinking trading volume near 134 or 128, consider gradually positioning yourself.
If you already have a position: If your position is heavy, consider reducing part of it during a rebound to lower your cost, so that your mindset will be more stable.
I am Qi He, a companion who only wants to help you have a clearer mind and better odds in this cruel market. If tonight's trend makes your heart race and you can't see the direction, you might as well hit follow. The upcoming tough battle is whether to break up to 144 or test down to 128; I will accompany you to watch the market and share my insights and strategies at the first opportunity.
Remember, the greater the storm, the more valuable the fish. But the prerequisite is that your boat must be strong enough. I hope my analysis can serve as a ballast on your ship. Follow Qi He, + chat room to help you avoid pitfalls, and immediately analyze subsequent capital movements to seize every opportunity to make money!
