SOL is generally weaker compared to the market as a whole, which is related to the flow of funds to other altcoins.
Currently, it is oscillating at a high level within the range, forming a bullish continuation pattern of a head and shoulders, with the right shoulder of the expected pattern not yet fully formed. If the continuation pattern is completed, SOL is highly likely to see another wave of new highs.
However, the expected patterns are only part of the trading plan after they are established; before they are established, we should still view them from the perspective of fluctuations and corrections.
Therefore, the trading plan needs to focus on several key positions.
Pay attention to the short-term 4-hour support level.
The first support level is 227-225, and it is currently testing the effectiveness of this support level. Pay attention to the position and candlestick pattern after the close.
The second support level is 221-218.
The third support level is around 209.
Pay attention to the resistance level.
The first resistance is 239 (233 is also a resistance level, and since the prices are quite close, it’s advisable to pay attention to the price action occurring here before deciding whether to enter).
The second resistance level is 247-249.
The third resistance level is 258.
Trading requires following the trend; go with the big and against the small. When the trend comes, make sure to ride the wave; be flexible in turning from following the trend to going against it. Resisting the trend is like trying to stop a car with a mantis, disrupting your own mindset and trading rhythm.
As the US stock market fluctuates at night, if there is too much volatility, all friends should remember to take profits often and decisively cut losses; holding onto positions has no significance.
If you have any interpretations of the market trends for other cryptocurrencies or questions regarding trading, feel free to leave a comment.
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Wishing you smooth trading. Thank you!