SOL trend is weak, key positions become the focus of long and short contention
SOL has shown poor performance recently, failing to follow mainstream coins last night, and this morning it directly fell below the second support level before rebounding slightly, with a weak short-term trend. Combining technical aspects, today we need to focus on the long and short contest at the $173 level:
1. Stabilizing above $175, a small-scale rebound is expected to begin
Technical signal: If the closing price on the 1-hour chart stabilizes above $175, it will be seen as a short-term stop-loss signal, and bulls may attempt a counterattack.
Resistance outlook: First resistance: $175 (morning rebound high point)
Second resistance: $178 (50-hour moving average pressure)
Third resistance: $182 (dense trading area in late April)
Trading strategy: After stabilizing, a small position can be taken to try long, with a stop loss set at $171 (breaking this level confirms weakness), with targets for sequential profit-taking.
2. Losing $173 may further probe lower levels
Risk warning: If it continues to fail to stabilize at $173, it indicates that the rebound momentum is exhausted, and the market may continue its downward trend.
Lower support levels: First support: $171 (the second support level broken this morning)
Second support: $169 (mid-March low)
Third support: $164 (upper edge of the range initiated at the beginning of the year)
Trading strategy: After breaking this level, a small position can be taken to try short, with a stop loss set at $175, targeting $171 and $169.
3. Current market characteristics and response suggestions
Weak trading volume: The trading volume in the past 24 hours has shrunk by 18% compared to the previous day, with low market participation, caution is needed against the "no-volume rebound" trap.
Trend positioning: On the daily chart, SOL is still in the $160-$185 oscillation range, with high selling and low buying before breaking through, avoiding chasing highs and killing dips.
Position management: Control the position of a single trade at 3%-5%, with stop loss not exceeding 2%, to prevent losses due to enlarged fluctuations.
