Hello everyone, I am Mig! Last night, SOL suddenly plummeted with increased volume, breaking the crucial level of 135, and the MACD showed a death cross, leading to a spread of market panic.
Is this wave of decline a technical correction or the beginning of a trend reversal? The latest movements from the Federal Reserve may have already provided the answer.
In-depth analysis of the news
This morning, several heavyweight officials from the Federal Reserve collectively released hawkish signals, and the risk of asset price collapse unexpectedly became the core topic of the interest rate cut discussion.
Director Cook pointed out three major hidden dangers in the financial system: the rapid expansion of the private credit market, the risks of hedge fund trading in government bonds, and the potential systemic risks caused by the application of generative AI in quantitative trading.
She candidly stated, "I wouldn't be surprised by a collapse in asset prices at historic highs," and this statement undoubtedly sounds the alarm for the market.
Of greater concern is that Cleveland Fed President Mester has clearly opposed further rate cuts, emphasizing that inflationary pressures have not been eliminated, while noting that a loose financial environment is precisely the justification for delaying rate cuts.
This series of hawkish statements is by no means an isolated event, but a clear signal from the Fed to the market: expectations of tightening liquidity are strengthening, and high-risk assets will be the first to bear the pressure. For crypto assets like SOL, changes in the macro environment may have lasting effects.
Multiple technical signals warning
From a technical indicator perspective, the SOL trend is concerning. In the MACD indicator, the yellow and white lines have clearly fallen below the 0 axis, forming a typical medium-term bearish signal - a death cross. The current price has not only lost the critical psychological level of 135, but the 143-150 area above also forms significant resistance.
Market data shows that the commission ratio has returned to zero and selling pressure is significant. Although there have been multiple attempts near 132.80, no effective rebound has been formed. This pattern of "increased volume decline" usually indicates that funds are accelerating their exit.
It is worth noting that if the 130 support is lost, the next target will point directly to a key technical position, and the gain or loss at this point will determine the fate of SOL's medium-term trend.
Professional analysis and market outlook
Based on an in-depth analysis of market logic, I believe SOL will still face downward pressure in the short term. The Fed's policy shift to hawkish and the technical death cross signal resonate, creating an unfavorable market environment.
However, the market always breeds opportunities in extreme pessimism. Through my exclusive analysis model, I have discovered a key area that is often overlooked by most investors, and this position is very likely to become a hub for the reversal of long and short forces. Want to know the key point that will determine the market's direction and the logic behind it? Follow Mig, as Mig Village will deeply interpret the market code.
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