Recently, the trend of SOL has caused concern for many. The decline has been significant, and panic is spreading, but don’t rush to cut losses just yet—today, I will analyze from both news and technical perspectives what’s really going on with this wave of market movement.
The background is very clear: yesterday, Bitcoin faced a double blow. On one hand, the Bank of Japan’s interest rate hike expectations emerged; on the other hand, turmoil from the Fed’s leadership change unsettled market sentiment, causing BTC to drop below $86,000. The whole network saw nearly $600 million in forced liquidations. As a mainstream coin, SOL naturally couldn’t escape this impact.
Looking at the technical details—this is the key.
The 1-hour MACD has already formed a death cross, with the yellow and white lines continuing to move downward below the zero axis. What does this indicate? The downward momentum has not yet been fully released; this is a warning signal. Resistance levels above are numerous; the positions at 134 and 140 are likely to encounter resistance during rebounds. Breaking through these levels easily will be quite challenging. On the downside, short-term support is around the 127 to 123 range; further down, it approaches 117 and even 112. In other words, if you’re still holding SOL now, you may have to endure another drop before seeing a rebound.
What to do if you’re trapped at 135? Here’s a three-step approach to help you avoid sinking deeper.
First: Never add to your position. Truly. Adding during a decline is like throwing more money into a trap—it may soothe your mind temporarily but in reality, it’s pouring fuel on the fire.
Second: Set a stop-loss. If you’re still holding, it’s recommended to place your stop-loss slightly below 123. This is to prevent the price from falling to 117 and spiraling out of control, causing a complete mental breakdown.
Third: Look for opportunities to reduce your holdings during rebounds. Once SOL bounces back to around 134, that’s your signal to start reducing or even fully clearing your position. Don’t think about holding on for a big rebound; greed is often the last trap.
I know cutting losses is tough. But in trading, discipline always outweighs luck—this is a lesson learned from years of market experience, accumulated through blood and tears.