Today's decline of SOL0725 is not only the realization of technical logic, but also includes the correction of market sentiment; whether the key support can be maintained is the key window for rebound.
🕵️ The three main reasons for the decline are revealed
1️⃣ Overall market adjustment & capital profit-taking
The overall Bitcoin market has pulled back from last week's high, driving the entire crypto market under pressure. Most mainstream currencies, including SOL, have seen profit-taking, and bullish sentiment has receded marginally.
2️⃣ The technical structure has been destroyed and long positions have been liquidated
SOL fell below the previous key support level (about $188–190), triggering a round of programmed stop loss. On-chain data shows that a large number of long positions have been liquidated in the market, strengthening downward pressure.
3️⃣ Psychological reaction after network upgrade
Although Solana has just completed a 20% block capacity expansion upgrade (from 60 MCU to 60M Compute Units) to improve infrastructure, it has been misinterpreted by the market in the short term as "optimization failed to immediately reflect price growth", and instead became a potential short-term selling point → exacerbating volatility.
✅ Short-term stop loss zone｜$175–$180｜If the support is effective, a short-term technical rebound can be expected.
🔁 Cycle shock zone｜$180–$190｜If it can return and stabilize, or repair the structure to continue to accumulate momentum for a rebound
❌ Structural destruction zone｜<$175｜Easily trigger a mid-term trend conversion, with a target of $160–$165
Aggressive: If the entry price of the position is high, $175–178 can be regarded as the bottom line for replenishment; or gradually absorb in the range of $180–183, with a target of $190–195;
Conservative: Wait for the price to rebound and stabilize back to $185–188, and then consider gradually adding positions;
