Look at the details of this 'high and then low' scenario: When SOL touched $218, the market showed a typical 'retail chasing signal' — the spot buying volume surged threefold within 15 minutes, with over 70% being small orders below $1,000, mostly from ordinary investors 'afraid of missing out'; but at the same time, on-chain data showed that multiple whale addresses holding over 10,000 SOL quietly placed sell orders in the $215-$218 range, with one major institution reducing its holdings by 2,000 SOL. This 'retail chasing and whales taking profit' game led directly to the subsequent retracement. When the price fell to the $208-$210 range, reversal signals appeared: whale sell orders disappeared, replaced by large buy orders of $500,000 - $1,000,000, with over 8,000 SOL accumulated within half an hour. Clearly, smart money is 'picking up the panic sell-off from retail' in this range.
From a technical perspective, the current retracement is more like 'cooling down before the market starts.' The RSI indicator has dropped from a high of 68 at $218 to the current level of 52, nearing a completely neutral level — this means that the previously overly optimistic sentiment has been digested, the market is neither at risk of being overbought nor trapped in panic selling, perfectly accumulating momentum for the next wave of the market. Comparing to previous SOL trends, every time after a high-level retracement, as long as RSI falls to the 50-55 range, a new rise often follows: for instance, at the beginning of July, SOL rose from $200 to $212, then RSI fell to 53, and shortly after, it broke through $220; in mid-August, it retraced from $215 to $205, and RSI dropped to 51, immediately rebounding to $218. Historical data won't simply repeat, but this pattern of 'retracement cooling → RSI neutrality → another rise' undoubtedly injects confidence into current holders.
What's more critical is the whale's 'shakeout' strategy, which is essentially to 'clean up the weak hands and solidify support.' Investors familiar with the SOL ecosystem know that the core support range recently is between $208 and $210 — here lies the upper edge of the previous consolidation platform, the intersection of the 5-day and 10-day moving averages, and is a key area where whales have repeatedly 'accumulated.' Each time SOL rises and then retraces, whales use price fluctuations to 'shake out the weak hands': forcing those who cannot withstand short-term volatility and who chase highs and sell lows to hand over their chips, allowing themselves to buy in at lower levels, thus reducing subsequent selling pressure during the rise. Just like this time, when it retraced from $218 to $208, it may seem like 'the market is weakening,' but in reality, it's the whales 'changing blood' — swapping unstable retail holdings for more steadfast long-term positions, paving the way for a breakout above $220 or even higher prices.
For ordinary investors, what you should do now is not to panic, but to 'follow simple strategies and seize the opportunity during the retracement':
Don't chase highs, buy the dips: Avoid blindly chasing prices above $215, but wait for the price to drop to the support range of $208-$210 before making a move. This way, you can reduce the risk of being trapped in the short term and acquire more cost-effective chips.
Hold firmly and ignore short-term fluctuations: If you already hold SOL at a low position, there’s no need to be affected by a single-day drop of around $10 — the long-term logic of SOL (increased ecosystem activity, continuous institutional funds entering, growth in DeFi TVL) has not changed. Short-term fluctuations are merely a means for whales to shake out weak hands; holding onto your chips is essential to benefit from the main upward trend.
Keep a close eye on momentum reversal signals: The next focus should be on two indicators: first, whether the price can stabilize above $210 and regain the 5-day moving average; second, whether the trading volume can increase accordingly. If trading volume shrinks during the retracement and increases during the rebound, it indicates that the bulls have regained control. The probability of breaking through $218 in the next wave will significantly increase.
Currently, SOL is like 'charging before drawing the bow' — the retracement is not the end of the market, but a preparation for a stronger rise. Those who FOMOed in at $218 made the mistake of being 'swept up by short-term emotions'; while smart holders see the opportunity in the retracement, thinking 'when others panic, I am greedy.' Remember, profits in the crypto market are never made through the 'stimulation' of chasing highs and selling lows, but through the patience of 'understanding the rules and sticking to strategies.' When SOL completes this round of retracement, the next targets might be $220 and $230, and those who seize this retracement opportunity will truly enjoy the dividends of SOL ecosystem growth in the subsequent rise.
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