Sticking to a trading plan is the most effective weapon against market sentiment fluctuations.

Last night around 11 PM, while watching the market, SOL suddenly surged with high volume, jumping from over $190 straight to $196. Friends who were shorting at the bottom probably got "shocked" by this move. But then the market quickly retreated, now fluctuating around $194. The most common question I received in private messages was: "Is this just a pullback after the rise? Dare we buy in again?"

Honestly, there's no need to rush. I watched the market all night and found that the main players haven't actually offloaded their positions. The decline from $199 is just normal shakeout, not a sign of a top. Although trading volume has decreased in the past two days, there are no signs of large-scale capital fleeing, and the overall situation still favors the bulls.

How to tell if it's a shakeout or distribution? The key lies in two things—trading volume and price action. When the main players are truly offloading, it will be accompanied by sustained increasing volume and continuous price decline. Last night’s rhythm for SOL was completely opposite—after the rise, the pullback was very healthy, and during the pullback, volume actually shrank significantly. This clearly indicates that the main players are not taking the opportunity to dump.

The classic pattern of market makers shaking out traders is well-known: after pushing the price up, they suppress it, deliberately creating the illusion that "this is the top," scaring retail investors into panic selling, so they can buy cheaper at the lows. This combination of false breakout, sideways consolidation, and suppression is designed to confuse investors’ sight, ultimately forcing them out.

From a candlestick perspective, the key support zone for SOL is currently between $192 and $196. As long as the price doesn't effectively break below $192-$193, the rebound momentum still exists.