$SOL #SOL#Solana Market Trends#Cryptocurrency Analysis#Impact of Non-Farm Data#Crypto Circle Dynamics#Blockchain Discussion

Analysis of Market Trends on the Afternoon of May 5

Technical analysis shows that the daily chart has closed in the red for two consecutive days, with the morning closing forming a long upper shadow and a long bearish candle, indicating that the bears dominate at the daily level and the short-term trend is weak. Meanwhile, the moving average system is trending downward, and the MACD indicator is showing overbought signals with the potential to form a death cross, suggesting that the risk of a downtrend in the larger cycle still exists.

From the 4-hour chart, after the price of Solana rose and then fell back, it has broken below the lower Bollinger Band. Although it is fluctuating within a box range, the short-term performance is weak. Current attention needs to be paid to [Specific Support Level 1] and [Specific Support Level 2]; if these are effectively broken, the downward space will open up. Until key support is broken, it is recommended to adopt a high-sell low-buy short-term strategy while paying attention to the strength of intraday rebounds.

The KDJ indicator's death cross is expanding downward, and the MACD's dual lines and histogram show a trend towards forming a death cross, with trading volume gradually increasing, maintaining the bearish pattern on the daily chart.

Last week, spot ETF funds continued to flow in, limiting the decline of Solana. The non-farm data exceeded expectations, pushing prices to refresh stage highs, but the Federal Reserve remains resolutely committed to high interest rates, and other economic data is performing poorly. Therefore, the strategy remains focused on establishing short positions at high points while closely monitoring market trends and changes in key support levels.