Friends! I am Hongcai! SOL is currently teetering on the edge of a cliff! Last night, SOL's bearish candle broke through the critical level of 125, touching the previous low of 121. Although it has rebounded with reduced volume now, it is clearly struggling under the pressure of 125. This is very likely a continuation of a decline, and a bigger storm may be just around the corner!
News front
Although Solana has gained entry qualifications for Brazilian institutions and ETF funds are still flowing in, the price is hovering around $122, effectively playing dead, which is a problem in itself! It indicates that large funds are offloading on positive news or completely ignoring it. Coupled with Bitcoin's market also being sluggish, is it possible for SOL to take off alone? Difficult!
Technical analysis
The 1-hour chart is clear; 125 has changed from support to a solid resistance.
Currently, the volume is shrinking, and the rebound is weak, which is a typical signal of red bars turning into green bars but lacking strength, indicating the weakness of the bulls.
The MACD indicator is still showing a dead cross below the water, indicating that the downward momentum has not been fully released.
121 is the last fortress. Once it breaks, the gates to 115 and even 105 will open!
Rainbow Finance's personal view:
Currently, the market is still primarily bearish. Short on rallies; the movements of the whales can be used as a reference, but do not follow the trend blindly. Currently, the whales who are going long are all losing. Others with long-term capital can withstand losses; even if they lose, they still have bullets to enter the market, while if you lose, you can only miss the market and watch.
If 125 cannot be surpassed, there is a high probability of continued decline. The weak rebound during the day is just an opportunity for you to reduce your positions; do not mistake it for a reversal. A true bullish counterattack must see strong volume and firmly stand back above 125.
Blood and tears advice for all players:
Aggressive players can try shorting with a small position near 125. Remember, at the 121 support level, partially take profit on short positions to guard against a spike rebound. Bulls looking to catch the bottom must exercise restraint.
In a downtrend, catching flying knives is the easiest way to get hurt. It's best to be a spectator and wait for SOL to clearly break out of the bottom pattern before considering to join in.
Remember, in a bear market, surviving is more important than how much you earn. The next stop for SOL is 105 or to regain upward momentum; the market will soon provide the answer. Follow Rainbow Finance to avoid deep pits and accurately catch the bottom!
A decline is not the end of the world, but a touchstone to test your understanding and discipline. Only those who can remain calm in panic can seize the next wave of surges. Follow Rainbow Finance and participate in every offensive! Rainbow Finance will announce specific entry times and real-time news every day in the chatroom! #加密市场观察 $SOL
