Jin Zhu's strategy to break even
Control risks, find opportunities to average down costs or selectively reduce losses to exit!
If you are stuck above 140:
For those with heavy positions: Don't stubbornly hold on! Wait for the price to rebound near the yellow trend line, and if it is still under pressure and the trading volume is not large, decisively reduce some positions! Lower the risk first. Don't fantasize about breaking even all at once, focus on reducing losses now.
For those with light positions: relatively have space to wait. Also pay attention to the pressure performance above, if not strong, reduce some. Wait for the price to pull back to key support, stabilize and show signs of rebound, then consider averaging down a little to lower your original high cost. But the money used for averaging down must be 'idle money'!
If you are stuck in the 136-140 range:
The key is to watch the support below! First, ensure that the price does not effectively break below the 136.15 support. If it can hold and stabilize here, you can wait and see if the rebound can touch or even break the yellow pressure line.
Be cautious if it breaks below 136.15! If it breaks 136.15 with increased volume, the next support is 134.18. If it can't hold and rebound at 134.18, it indicates weakness and may likely go down to 130 or even lower. In this case, take the opportunity to reduce positions during the rebound, don't wait until it drops further to cut losses.
No matter where you are stuck, you must!
Set a psychological/actual stop loss level: For those stuck at high positions, once the closing price effectively breaks below 134.18, or if you feel you can't bear more drops, you should cut some to protect your capital. If the technicals turn bad, you must recognize the mistake.
Three principles of averaging down:
Only average down at key support levels.
Must wait for effective price support and signs of stabilization before averaging down.
It must be 'idle money'! And average down in batches! Don't go all in! If you average down incorrectly, you still need to stop loss!
Position is key: The SOL price is currently stuck at a key position! The prominent yellow upward trend line on the chart is now a pressure level, and the price has attempted to break through several times without success. This indicates there is significant selling pressure here, and to continue rising, it must first break through this yellow line.
Is the rapid rise too fast and needs a break? The KDJ indicator below shows: K=90.31, D=85.90, J=99.14. Regardless of the specific calculation, just looking at the colors and values, this is clearly an 'overbought' alert! It means this small rebound has been a bit too aggressive, too many buyers in a short time, and there may easily be exhaustion and price pullback afterward.
Where is the support? The horizontal blue lines on the chart are the key support reference points.
First line of defense: around 134.18 - short-term lifeline, breaking it indicates a weak rebound.
Second line of defense: around 136.15 - strong support level. If it holds here, the bulls still have a chance.
Next down are 132.21 and 129.77. If it really drops here, it indicates that the rebound may be completely over, and it will need to test the bottom again.
The foundation for the rebound is still there: it did hold around 125.83 and did not continue to fall, this is the starting point of this rebound, and since this bottom hasn't been broken, the rebound structure is temporarily not completely bad.
Volume cooperation: The red and green bars at the bottom of the chart represent trading volume. During the recent rebound, the trading volume has increased, which is a good thing. But if the volume increases during a price pullback, that's dangerous.
How might SOL move today?
Scenario one: Pull back first!
Because the 'overbought' warning is too loud, and there is a yellow pressure line above. The price is likely to drop first to find support.
The key is whether the two supports at 134.18 and 136.15 can hold.
Holding on, may take a breather and try to break the yellow line again. If it can't hold on, the depth of the pullback will increase.
Scenario two: Hard breakthrough!
Suddenly a big positive news comes, trading volume surges, and the price breaks through the yellow trend line pressure in one go.
If it can stabilize after breaking through, the target might be the previous small high point area.
Challenge: The technicals currently show significant overbought pressure, and without particularly strong positive momentum, a hard breakthrough is quite difficult.
Scenario three: Continued stalemate
The price is fluctuating between the yellow pressure line and the support above 136.15, waiting for the market to choose a direction. This usually won’t last too long.
Blindly going solo will never bring opportunities, why not follow Jin Zhu, I will guide you to explore tenfold potential coins! Top-tier resources!
