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SOL's recent trend is quite interesting. The price is stuck at 125.9, just above the middle band of the Bollinger Bands at 125.1 — which is the dividing line between bulls and bears. If it stabilizes above this level, it can maintain its footing. Resistance above is at 126.4, which is the upper Bollinger Band.
How to interpret the technicals? The MACD indicator's fast and slow lines are tangled near the zero axis. The key point is that although the momentum histogram is negative, it is gradually shrinking. This indicates that the bearish force is weakening, and the demand for a rebound is building.
The most critical factor is the volume performance. Recently, a bullish candle with obvious volume broke out, but overall trading volume is actually shrinking — a typical pattern of volume contraction followed by a volume surge during a rebound, often signaling that the main force's shakeout phase is nearing its end. Looking at the distribution of chips, the support at 123.9 is strong. The current price is oscillating above this support, indicating a strong consolidation pattern.
Based on these observations, the bullish advantage remains valid. There are three reasons to be optimistic:
**1. Technical support**. The price has stabilized above the middle Bollinger Band, and the bearish momentum in MACD is waning, indicating a shift towards strength.
**2. Volume and price coordination**. The retracement shows volume contraction, while the rebound is accompanied by volume expansion — a healthy bullish volume-price structure.
**3. Structural integrity**. The overall trend is still within an upward channel, and after testing support, further gains are expected.
In terms of trading strategy, the range between 125.3 and 125.5 can be tested, as it aligns with the resonance support of the middle Bollinger Band and previous support levels. Setting a stop-loss below 125 is safer.
For targets, the first goal is around 126.5 to 127.0. If broken, then look towards 128.0 to 128.5.
The key focus now is whether the 125.0 support can hold effectively. As long as it does not break, the bullish outlook remains. If volume surges and it breaks below 125.0, a reassessment is needed. Use a small position for trial, and add to positions after confirming a breakout — this approach will make risk management more reliable.