Yesterday's market commentary also mentioned that after the rebound, there will be further declines; SOL is going to fall, completing a wave of decline by leveraging Bitcoin's drop.
The daily chart has been gently increasing in volume for three consecutive days, with prices rapidly declining. After finding support at the daily MA120 line, a rapid rebound pattern at the hourly level has formed. It can be confirmed that the MA120 line is a strong and effective support level in the short term.
After such fluctuations in the trend, there won't be much volatility in the short term. The weekend will mainly see narrow fluctuations, as both bullish and bearish forces are greatly exhausted and need time to adjust.
We have been emphasizing that the main force behind SOL is the European and American capital. Therefore, with the upcoming Christmas holiday, it is expected that there won't be significant price fluctuations for SOL.
As the daily MA30 line begins to turn downward, the MA30 line will become a major resistance level for upward movement. A direct V-reversal is not expected, and the upward consolidation trend will require patience before it appears.
Short-term positions for bottom fishing can continue to be held until the neckline and major resistance levels are reached before reducing positions.
Daily level resistance at 211.9-228.2-240-270-283-300, support at 178.2-169.3-158.8-152.3.
The hourly trend is basically the same as Bitcoin and Ethereum, with a one-hour pullback not yet in effect, and prices are approaching the hourly EMA52 resistance level. In the short term, one can short at 197.1 and 203, and go long at 186.5 and 180.
From the liquidation heatmap data of SOL, it can be seen that
With prices rising, there are a large number of significant short positions waiting to be liquidated in the 195-204.6 and 210.6-224 areas.
With prices declining, there are a large number of significant long positions waiting to be liquidated in the 187.4-180.4 area.
