SOL Technical Analysis: Narrowing Fluctuation Range, Beware of Downward Break Risk
Recent movements of SOL have been highly correlated with Bitcoin, showing continued narrow fluctuations at the hourly level, with light market trading. The daily chart has formed a Doji candlestick pattern, with trading volume shrinking by 20% compared to the previous day, ending a series of bearish days and showing a slight rebound. The current price is repeatedly testing support around 142, but the strength of the rebound is gradually weakening, indicating that the support effect at this level is diminishing.
Key Observation Points
Price Structure: The 142 area has formed a short-term dividing line between bulls and bears, with repeated tests reducing the effectiveness of support.
Volume Characteristics: The rebound is accompanied by shrinking trading volume, indicating insufficient market willingness to buy.
Fluctuation Range: The larger box is operating between 120-164, with 142 as the key midpoint.
Bull-Bear Key Level Layout
Upper Resistance: 156 (short-term pressure) → 165 (upper edge of the box) → 177 (previous high area)
Lower Support: 142 (psychological level) → 134 (secondary support) → 120 (lower edge of the box) → 110 (trend support)
Operational Strategy Suggestions
If Bitcoin continues to weaken, SOL is likely to test the support area of 134-120 downwards. Short-term traders can pay attention to the gains and losses at the 142 position; if it effectively breaks down and then confirms a rebound, they may consider lightly going short. Medium to long-term investors need to patiently wait for stabilization signals near 120, as this position acts as the lower edge of the larger box, potentially providing a better buying opportunity. In the current market environment, one must be cautious of false breakout risks and set strict stop-loss orders.
