The middle band of the Bollinger Bands can be understood as the core support axis of the market. In a bull market, prices are like being on a guided rail, steadily operating above the middle band. However, if a rebound fails to break through the middle band and is pressed down tightly, it can generally be judged that the bulls have lost most of their fighting power.
Looking at SOL's performance, the recent lows are getting lower and lower, forming a typical "stepwise decline" trend. Each rebound seems to be a turnaround, but in reality, it is giving the bears a knife—bulls rebound forcefully, while bears take the opportunity to sell off. This repeated probing of lows without stabilization usually indicates that the downward trend has not truly ended.
In the short term, it is necessary to see if there is volume support for a genuine rebound; otherwise, this sequence of lows may continue to be refreshed.
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The middle band of the Bollinger Bands can be understood as the core support axis of the market. In a bull market, prices are like being on a guided rail, steadily operating above the middle band. However, if a rebound fails to break through the middle band and is pressed down tightly, it can generally be judged that the bulls have lost most of their fighting power.
Looking at SOL's performance, the recent lows are getting lower and lower, forming a typical "stepwise decline" trend. Each rebound seems to be a turnaround, but in reality, it is giving the bears a knife—bulls rebound forcefully, while bears take the opportunity to sell off. This repeated probing of lows without stabilization usually indicates that the downward trend has not truly ended.
In the short term, it is necessary to see if there is volume support for a genuine rebound; otherwise, this sequence of lows may continue to be refreshed.