Analysis of the Top Divergence Phenomenon of Altcoins: Strategic Thoughts Using SOL as an Example Recently, multiple altcoins, including SOL, have shown top divergence technical patterns in the cryptocurrency market. However, it is important to clarify that this signal cannot simply be equated with a short-selling basis.
At the level of trading strategies, the interpretation of top divergence should be flexibly judged in conjunction with the market stage and price position.
In the current market environment, such top divergence is better viewed as an important indication for dynamic position management.
For bullish holders, this signal does not indicate a trend reversal but rather suggests moderately reducing positions or setting protective stop-losses to lower holding risks and reserve funds to cope with potential volatility. Notably, under specific technical frameworks, the pullback following a top divergence may create better opportunities for increasing positions—if the price stabilizes at a key support level, it actually provides a window for buying on dips.
Investors should abandon binary thinking of either bullish or bearish and use top divergence as an effective tool to optimize position structure and seize swing opportunities.
