Recently, SOL has been testing around 127 repeatedly, and many people are unsure of the direction. Instead of watching the price dance, it's better to see clearly the two layers of logic in the market.

**On the news front**

The Federal Reserve announced the injection of $6.8 billion in liquidity into the market, with a cumulative scale approaching $38 billion within ten days. It sounds quite impressive, and the market has indeed received a reassurance in the short term. But we need to think calmly: this is a routine stability operation at the end of the year, and the main purpose is to ensure sufficient blood circulation in the financial system, not to save the crypto market. The splash of liquidity may reach the crypto circle more due to emotional factors. Whether SOL can continue to rise depends on its own fundamentals and cannot rely entirely on this external aid.

**What kind of routine is the technical aspect following?**

Looking at the 1-hour chart, SOL is indeed in an ascending channel, but the position is a bit awkward:

Above is the barrier of 134, breaking through it will open up new imaginative space. Below is 127, which is the dividing line between long and short; once it falls below, the significance will be great. Further down, the first support below 127 is 123.5, and 116 is the hard bottom line.

The MACD has formed a golden cross above the 0 axis, looking quite strong. The problem is that when the price moves up, the trading volume is actually shrinking. It’s like a sprinter suddenly losing strength, and the signal of being "strong on the outside but weak on the inside" is very clear. The decrease in energy means that the possibility of a sustained rise is decreasing, so vigilance is necessary.