【SOL 4H】More people are trying to catch the bottom, but fewer are paying to go long
Everyone says $SOL is oversold and it’s time to buy the dip, but the derivatives data is signaling the opposite.
At 13:01 on Binance, SOL was trading at 108.0, down 4.5% over 24 hours.
Three pieces of evidence:
① The daily RSI is only 29.3, meaning the market is oversold; chasing shorts offers a poor risk-reward.
② The long/short account ratio rose from 2.32 to 2.51, with more accounts buying the dip. But the funding rate is -0.0075%, and sellers are more aggressive in the market.
③ Open interest fell 2.8% over 24 hours, suggesting the decline was mainly driven by longs closing their positions.
My view: There’s room for a short-term rebound, but too many people are trying to catch the bottom. I’m looking for a rebound, not a reversal.
Plan 1 (primary): Place a small long order around 105.5, stop-loss at 104.1, first target at 110.8.
Plan 2 (backup): If it rebounds to around 113.3 (strong resistance zone + Fib 0.5) without a volume breakout, consider placing a small short order, stop-loss at 114.6, target at 110.8.
Invalidation: If a 4H candle closes below 104.1, exit the long and accept the loss. The next level to watch is the previous low at 101.7.
News: According to KuCoin, Pando’s spot SOL ETF is scheduled to list on the Hong Kong Stock Exchange today.
At 105, are you buying or waiting for 101.7?
Source: Binance futures data, KuCoin
$SOL #Solana #TechnicalAnalysis
#BinanceSquare
⚠️ The above is a summary of information and personal opinion, and does not constitute investment advice. DYOR.
Everyone says $SOL is oversold and it’s time to buy the dip, but the derivatives data is signaling the opposite.
At 13:01 on Binance, SOL was trading at 108.0, down 4.5% over 24 hours.
Three pieces of evidence:
① The daily RSI is only 29.3, meaning the market is oversold; chasing shorts offers a poor risk-reward.
② The long/short account ratio rose from 2.32 to 2.51, with more accounts buying the dip. But the funding rate is -0.0075%, and sellers are more aggressive in the market.
③ Open interest fell 2.8% over 24 hours, suggesting the decline was mainly driven by longs closing their positions.
My view: There’s room for a short-term rebound, but too many people are trying to catch the bottom. I’m looking for a rebound, not a reversal.
Plan 1 (primary): Place a small long order around 105.5, stop-loss at 104.1, first target at 110.8.
Plan 2 (backup): If it rebounds to around 113.3 (strong resistance zone + Fib 0.5) without a volume breakout, consider placing a small short order, stop-loss at 114.6, target at 110.8.
Invalidation: If a 4H candle closes below 104.1, exit the long and accept the loss. The next level to watch is the previous low at 101.7.
News: According to KuCoin, Pando’s spot SOL ETF is scheduled to list on the Hong Kong Stock Exchange today.
At 105, are you buying or waiting for 101.7?
Source: Binance futures data, KuCoin
$SOL #Solana #TechnicalAnalysis
#BinanceSquare
⚠️ The above is a summary of information and personal opinion, and does not constitute investment advice. DYOR.