Hey everyone, let's look at the SOL chart, where after a fantastic recovery from the depths, the bulls have been checked. The price hit a wall and has now started to pull back, which is a normal and healthy part of any market recovery. Our momentum gauges on this high timeframe are now signaling that sellers are stepping in to test the buyers' resolve.
For the short-term trader, a bearish MACD crossover on the 12-hour chart is a significant signal that demands respect. The wind is no longer at your back. The professional approach here is to switch to a defensive mindset, protect your capital, and wait for the storm to pass. Let the sellers run out of steam and wait for the market to build a new, stable floor before you start looking for your next entry.
Now, for our long-term investors, this is not a moment for fear; it's a moment of truth. Every strong recovery needs to be tested, and this is the first major test. This pullback is a healthy process that creates the very dips you've been waiting for to add to your position. This is an opportunity to be a strategic buyer while others are getting nervous. As always, this is not financial advice. Know your own strategy.