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SOL recently experienced a wave of market activity that indeed unsettled many. The recent rally was impressive, prompting numerous questions from followers, but my advice remains the same: be patient. After years in this space, I've seen too many stories of chasing highs and getting caught. The current upward momentum in SOL is most likely entering a "consolidation phase," in other words, a period for the bulls to catch their breath. But this doesn't mean the story is over; in fact, it's a prime window for re-strategizing.
Let's start with the conclusion before diving into the data. The bullish logic for SOL remains intact and hasn't reached a reversal point yet. However, overbought signals are now quite evident, and rushing to chase the high could be setting oneself up for institutions' profit-taking actions. The real opportunity lies in the correction or waiting for a confirmed breakout to get in at the best entry point.
Looking at specific trading data makes this clearer. The 24-hour trading volume has already surpassed 33 million, and the latest candlestick shows increased volume with a bullish close. Such volume levels are definitely beyond what retail investors can drive, indicating that institutional funds and large players are actively entering the market. But there's a key logical shift here: high trading volume means different things at different stages of a trend. Early in a trend, high volume indicates strong buying interest; in an overbought state, the same volume could signal the "last hurrah before distribution." This is why caution is essential.
From a capital flow perspective, the data is even more telling. The net inflow in the spot market over the past 24 hours reached 23.5 million, and the cumulative net inflow over the past 7 days exceeded 77 million. What does this tell us? That both small and large investors are actively building positions and holding, and the resilience of spot buying should not be underestimated. Continuous capital inflows provide fundamental support for the bulls.
In summary, SOL's bullish foundation remains solid, but short-term overbought risks should be watched carefully. True investors should stay calm, look for better entry points during the correction waves, and avoid being blinded by the current gains. The market always offers opportunities to those with patience.