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$SOL This move is a bit aggressive.
At the 133.5 level, the short, medium, and long-term cost lines are all tightly packed together and have been sideways for a long time. As a result, tonight's big bullish candle broke through the ceiling, which usually indicates: after holding so long, the major players are finally not pretending anymore.
Now the price has already surged to around 138.5. What should we do next? Here are my thoughts:
**If you are bullish:**
The most ideal scenario is to wait for a pullback. If the price gently dips from 138.5 and stabilizes around 137.00, that’s basically a good entry point. You can buy in batches, with a stop loss below 134.00.
If there is no pullback and it just consolidates briefly before breaking through 140? That indicates the bulls are really eager. At this point, a small long position is fine, just be quick.
If you already hold a core position, then it’s simple — hold at 137.00 and don’t be shaken out by small fluctuations. As long as the trend is not broken, just hold steady.
**If you want to short:**
First, trading against the trend is inherently risky.
If the price reaches the previous high of 144.93 but cannot go higher and forms a long upper shadow, aggressive traders can try a small short position as a test. But the stop loss must be very strict.
Another scenario is if the price not only pulls back but also drops sharply below the key supports at 137 and 134 with increased volume. This suggests the breakout might be false and the structure is broken. At this point, consider a small short position.
Regardless, the stop loss for shorts must be set above 145.50. Once the price breaks above the previous high of 144.93, stop immediately without hesitation.
My personal inclination is: after a breakout, there’s a high probability of a smooth trend continuing. But how to operate exactly depends on your style and position management.