The recent price trend of SOL has shown a clear reversal. After effectively breaking below the previous key support at 141.3, it has now fallen below all major moving averages, exhibiting a free-fall type decline.

From a technical perspective, the situation is indeed not very optimistic. The MA5 is around 133.77, almost coinciding with the current price, indicating that there has been little effective support during the decline. More importantly, the RSI indicator has already entered an extremely oversold zone at 15.2, which is quite rare. According to conventional technical analysis logic, such extreme overselling often signals a short-term technical rebound may occur at any time, but the problem is—the trend structure itself has been severely damaged.

How to understand the current bullish and bearish dynamics? First, look at the bearish side. The price has dropped sharply through multiple support levels, indicating that the medium-term upward structure has been confirmed as completed. From the moving average arrangement, it clearly shows a bearish divergence pattern, and the MACD has formed a death cross below the zero line, with downward momentum still quite strong. The core goal of the bears is to continue pushing the price below the moving average system, then test the next key support level, which is around 130.00, and possibly even probe down to the previous low at 127.04.

Now, consider the bullish perspective. Since RSI has fallen to such an extreme low, market sentiment is definitely in a panic state, which suggests that the bearish force may be temporarily exhausted. From this angle, as long as a structured rebound occurs, the bulls’ first priority is to recover above MA10 (137.66) and hold steady at that level to establish a temporary bottoming platform. Frankly, in the current environment, the bullish strength is quite limited, mainly playing for a technical rebound after oversold conditions.

There are several key levels to watch closely. The first resistance zone is between 135.5 and 137.0, which is the first hurdle the price may encounter after an initial rebound from the decline. Further up, the 138.0-140.0 range is the core resistance zone, covering MA10 to MA20. As for support, there are no obvious immediate support points; the next meaningful support area is between 128.6 and 130.0, based on previous lows and the key round number.

From a trading perspective, what should be done? For bearish traders, given that RSI is already extremely oversold, it’s not very appropriate to chase short positions directly. A wiser approach is to patiently wait for the price to undergo a technical rebound in the 137.0-139.0 zone. Once the rebound shows signs of stagnation or obvious weakness in further upward movement, it could be a high-value opportunity to go short. Stop-loss can be set above 140.5.

For bullish traders, since the overselling is so severe, focus on two specific scenarios. The first is if the price forms a strong bottom pattern on the hourly chart with volume at the current level (133-134), then a small position can be used to bet on a rebound to 136-137. The second is if the price quickly drops to the 128.6-130.0 range and then rapidly pulls back, forming a noticeable long lower shadow. However, both scenarios require strict risk control—stop-loss should be set 1-1.5% below the entry point, and quick in-and-out actions are necessary; avoid greed.