Many viewers in the live stream are fond of trading Solana. The price of Solana has now reached a crucial level of 120. This level is quite special; from a weekly chart perspective, it's the 0.618 Fibonacci retracement level. If this level holds, the outlook remains bullish, making it a relatively high-probability entry point for long positions. Looking back at historical price action, this level has been touched multiple times. The first time it rose to over 200, it consolidated at this level for a long time before two surges to nearly 300 (around 295), after which it fell back to around this level again.
There is very strong support at 120. This is purely a technical analysis, based on various online sources.
Positive aspects: High Solana network activity, strong stablecoin inflows (leading in the past week), good DEX revenue performance, and the ecosystem remains attractive in the DeFi and meme coin sectors.
Negative aspects include institutional selling, litigation news (such as related to Pump.fun), and overall market concerns about the disconnect between SOL's fundamentals and price (weekly active users hit a record high, but the price failed to keep up). Regarding the future performance of SOL, my personal view is not optimistic. SOL is also correlated with the overall market; if the current BTC market cycle is unfavorable, it will inevitably affect SOL. Secondly, the sentiment among meme enthusiasts is very different from before; they no longer believe in long-term holding and the overall meme atmosphere is very poor. The entry of Binance's Chinese memes has weakened SOL's influence. I feel that even if it rises, it will only be a small increase, and returning to its previous peak will be difficult unless BTC surges...
Overall, pay attention to the 120 level. If it continues to fall while the overall market is also declining, you should short as much as possible. If it continues to trade sideways around this level, I will also be bearish. The strategy is to short on rallies. However, some people like to buy the dip. If you choose to go long, you can hold the long position for a short period and wait for market sentiment to improve before considering going long again.
Of course, if you are trading on a very long timeframe and have good position management skills, going long in this situation is not out of the question. Just be prepared for further downside...



