The recent trend of SOL has attracted widespread follow in the market. From an on-chain perspective, large funds have continued to experience net outflows, and market enthusiasm has noticeably declined. Meanwhile, the participation enthusiasm of retail investors remains high—according to statistical data, about 51% of retail investors still maintain long positions, and this one-sided sentiment often carries risks in a high fluctuation environment.

Interestingly, the scale of short positions liquidated in the past 24 hours reached 5.36 million, far exceeding the volume of long positions liquidated by 3 times. This reflects that the market's violent fluctuations are rapidly clearing various extreme positions. Each time the price rebounds, it triggers the stop-loss of shorts, creating further upward momentum; while when the rebound lacks strength, long positions face the pressure of profit-taking.

From a technical perspective, the area around 127 has become a key battleground for long positions and short positions. If the price cannot effectively stabilize in this region, the downside risk will point to two important support levels at 122.40 and 117.30. These two points have a significant impact on the psychological expectations of retail investors, and a break below them could trigger a chain reaction.

The core contradiction in the current market lies in the fact that funds are flowing out, but sentiment remains extremely optimistic. This divergence often nurtures significant directional opportunities. Whether looking for short entry points during a rebound or positioning defensively near support levels, it is essential to maintain a keen observation of price action. The essence of trading is always about probability and risk management; blindly chasing highs or panic selling can easily lead to a passive situation.