Many have been asking why SOL is so weak these days.
Today, let's talk about it. The entire market is divided into three major segments.
The first is the value segment of Ethereum series public chains,
The second is the meme coin segment represented by Dogecoin,
The third is the土狗 segment of the SOL ecosystem.
The earliest explosion was driven by the土狗 of the SOL series chain, which led to a strong surge of SOL in this round. Also, DOGE experienced a round of surges due to the mosaic effect. Recently, it is ETH's turn to show a补涨 effect, which naturally drives the round of补涨 for the value coins of all layer two series public chains. Moreover, ETH has clearly not yet reached the real explosion threshold. Funds are all returning from meme coins and土狗 altcoins back to mainstream value coins, which naturally weakens the enthusiasm for土狗 on the SOL chain, thereby short-term demand for SOL will weaken. Thus, SOL will enter a washout and volatility phase in the short term. When can it explode again? It will need to wait until Ethereum reaches a critical point of explosion, for example, in the range of 3850-4050. At that time, Ethereum will enter a critical interval, and similarly, a washout adjustment period will occur. At this time, funds will seek a segment to start rotating. By then, the washout time for SOL will have been sufficient, and everyone's attention will be focused on the Ethereum series, allowing funds to secretly return to SOL. Therefore, this will be the opportunity for SOL's second half explosion. Thus, currently SOL can be traded in the short term within the volatility range. For medium to long term, it is necessary to wait for the washout cycle to end, and during the consolidation, grinding, and testing phase, consider laying down positions for the medium to long term. The best range is between 205-220. In the short term, those who are stuck at high levels of 245-250 need not worry, as long as it is not high leverage. If it is high leverage, then during this washout process, consider reducing positions at the high points and increasing positions at the low points to lower the average cost. Reduce position at 245, increase at 230, increase at 225, reduce at 240, lowering your own cost price.