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Recent changes in SOL's technical pattern are worth paying attention to. Looking at price movements alone is not enough; we need to combine momentum indicators and divergence signals to understand the market's true intentions.
First, let's talk about MACD. This indicator is currently at a critical juncture. On the daily chart, both DIF and DEA are below the zero line and are tightly clustered, with the bars so short that they are almost invisible. What does this mean? The market is in a weak equilibrium, lacking a clear directional push. However, this extreme convergence usually doesn't last long, and a decision is imminent. The key is whether MACD can form a golden cross here; if the bars turn from green to red and continue to expand, it would be a good short-term bullish signal. Conversely, if DIF continues to diverge downward, the bears will regain control.
The RSI performance is relatively more optimistic. On the 2-day cycle, SOL's price hit a new low during last year's decline, but the RSI's low point was higher than the previous one—this is the so-called bullish divergence. In technical analysis, this is an important reversal warning, indicating that although the price is falling, the actual selling momentum has weakened. Once the price stabilizes and rebounds, breaking through the downward trendline, this divergence signal is confirmed, and the rebound is likely to be quite strong.
Volume also needs close monitoring. When these signals are confirmed, trading volume becomes crucial. Bulls aiming for real control cannot rely on bluffing; they need to let actual trading volume speak.