【$SOL Signal】Oversold Rebound Play! 1H RSI Seriously Oversold, Watch for Short Covering Rebound Opportunities

$SOL The 1H timeframe has experienced a waterfall decline and entered an extremely oversold zone (RSI 1H=18.3). The price is oscillating narrowly between 77.0-78.0, which is a typical sign of stabilization after a sharp drop. Although the 4H timeframe remains in a downtrend, open interest (OI) stays stable and has not dropped significantly with the price plunge, indicating it’s not purely a bullish squeeze. Short-term, the bearish momentum may weaken. Coupled with negative funding rates, there is a short-term opportunity for a short squeeze rebound.

🎯Direction: Long (Long)

🎯Entry/Order: 77.40 - 77.60 (Reason: Current lower boundary of the consolidation zone, 1H small double bottom pattern forming )

🛑Stop Loss: 76.80 (Reason: Break below previous low 77.06 and key round number confirms continuation of decline )

🚀Target 1: 79.50 (Reason: 1H EMA20 resistance level and previous minor support )

🚀Target 2: 81.00 (Reason: Starting point of the 4H large bearish candle and Fibonacci 0.382 retracement level )

🛡️Trading Management:

- Position Size Suggestion: Light (Reason: 4H trend remains bearish, this is a counter-trend rebound play with higher risk )

- Execution Strategy: After reaching Target 1, reduce position by 50% and move stop loss to entry price. Hold remaining position to aim for Target 2. If resistance around 79.50 is strong, consider exiting all positions.

Deep Logic: Order book shows heavy sell orders above 77.65, but buy orders below 77.50 are still decent, forming a short-term standoff. The key is whether volume can break through 78.0 and stabilize. The 1H RSI is severely oversold, indicating a technical correction is needed. Stable OI suggests no large-scale bullish capitulation. If the price quickly recovers above 78.5, it may trigger a chain reaction of short covering.

View real-time market 👇 $SOL

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