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SOL's recent market movements have truly been unpredictable, with frequent switches between gains and losses, leaving many traders a bit confused. Many people DM me asking whether they should trade SOL now, whether to go long or short, but I think instead of giving a direct conclusion, it's better to ask three key questions: Do you really understand the current trend pattern of SOL? Is your risk management plan ready? Are your trading goals clear? If you can't answer these three questions, I recommend observing for now and not rushing to get in.
Let's start by analyzing the first question—what exactly is the current pattern of SOL? Most people only see the price fluctuations up and down, unaware that behind the scenes, it's a battle between bulls and bears. Honestly, SOL is currently stuck in a "repeated oscillation near resistance zones," and has already shown clear signs of a downtrend. From a longer-term chart perspective, the 125-128 range forms a strong resistance zone, with repeated failed attempts to break through, indicating significant selling pressure at this level. Meanwhile, the upward momentum is waning, and the pace of gains has noticeably slowed, like a car's fuel tank nearing empty—any moment it could stall. For short-term traders, this pattern actually presents many shorting opportunities—the trend has already shown signs of reversal, and the risk-reward ratio is still decent.
Now, onto the second question: how can you control risk? This is the lifeblood of all trading and the most common blind spot for retail traders. Many traders focus on how much they can make, never considering what to do if they start losing.