Today we will analyze the short-term trend of SOL:
Judging from the four-hour chart, the short-term trend of SOL is currently in a downward trend, with high and low points gradually moving downwards, and there is no stop signal yet, so the correction may continue in the future.
The SOL ecology has been subject to a lot of hype recently, causing the price of SOL to rise accordingly, attracting a lot of attention. Many retail investors began to chase SOL and its ecological projects.
Fans of SOL are spreading the word that SOL will surpass ETH and BTC, but anyone with a little knowledge of the currency circle will not think so. This sentiment is somewhat similar to the scene of chasing up BTC last year, which eventually led to the chasers being trapped.
In my opinion, this situation is already a harbinger of the coming storm, and the risks are gradually emerging. At this time, people holding SOL should act cautiously instead of blindly adding positions.
SOL's market value has reached US$600 billion, and if doubled, it would be US$1.2 trillion. This is a huge amount of money. The market does not have enough funds to support SOL's sharp rise in the short term, so those chasing the rise will face greater risks.
Short-term trading needs to be flexible and close when the situation is good. Greed may lead to being trapped, so we must be good at stopping profits and losses and maintain good capital utilization. Remember, the point of short-term trading is to make quick profits.
The above analysis only represents personal opinions and does not constitute any investment advice.
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