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Recently, the Crypto Assets market has experienced another violent fluctuation, with Solana (SOL) being particularly noteworthy. The price of SOL suddenly fell sharply, breaking through the key support level of $188, a trend that caught many investors off guard.
The direct cause of this fall seems to be related to the sudden change in tariff policies. However, from a technical analysis perspective, this fall had actually been signaled earlier. The SOL price has failed to break through the resistance level of $194, and the previous MACD golden cross signal has also proven to be a misleading indicator. The lower Bollinger Band at $184 should have been the final line of defense, but ultimately it could not support the price.
In the short term, market risks may not have fully released yet. Investors need to be wary of SOL potentially falling further to around $180. However, for medium to long-term investors, this may be a good opportunity to position themselves. Historically, similar market corrections often give rise to rebound opportunities. For example, after a significant drop in CPI data last year, the market experienced a rebound of about 50%.
In the current situation, closely monitoring the movements of large holding addresses (commonly known as "whales") is especially important. If the SOL price falls below $180, it may be a good time to buy in batches. However, specific investment strategies still need to be formulated based on individual risk tolerance and the overall market trend.
It is worth noting that the upcoming Breakpoint conference in August may have an impact on the SOL price. Investors should take this important event into account when formulating their investment strategies.
Overall, the volatility of the Crypto Assets market has been high, and investors need to stay calm and manage risks effectively. The current market adjustment may provide entry opportunities for long-term investors, but it is also necessary to be cautious of further falls that may occur in the short term. In this uncertain market, maintaining rationality and patience, as well as conducting in-depth analysis of market dynamics, will be key to formulating successful investment strategies.