The signals revealed by SOL's 4-hour chart: oversold conditions combined with volume-price divergence—should we catch the falling knife?

【Crypto World】After analyzing the 4-hour chart of SOL, I found some interesting points.

Since the correction at midnight on December 11, the price started to rally at 16:00, directly breaking through the previous high of 20 and forming a large bullish candle. However, although the last candle is also bullish, the trading volume has clearly decreased—prices are rising, but buying momentum is not keeping up, making this upward push somewhat weak.

From a technical perspective: the MACD histogram is still below the zero line. The good news is that the negative value is narrowing, indicating that the bearish pressure is weakening; the KDJ has fallen into the oversold zone at 7, which theoretically suggests a potential rebound at any time. But we should be cautious of volume-price divergence; rising prices with decreasing volume often signal a top.

If I were to take action, I would see it like this: For aggressive entries, watch the recent low at 129.39; for more conservative positions, wait for a retest of the 128 level. Set stop-loss below 128.74—no hesitation. The initial target is the previous resistance at 141; if broken, consider taking partial profits at the high of 142.1. For short positions, wait until the price breaks above 142.81—don’t rush to catch the top.

Currently, the situation is a bit awkward—oversold and wanting to rebound, but volume is not supporting it. I prefer to wait for clearer signals before entering, to avoid being fooled by false breakouts.