【$SOL Signal】Hold Cash and Watch - Risk of Short Squeeze in Downtrend

$SOL In the daily chart downtrend, short-term buying absorption occurs in the 81.5-82.0 region. The 4H RSI(36.95) enters oversold territory, but the funding rate(-0.0106%) is negative and open interest(OI) remains stable, indicating a risk of a short squeeze. Deep imbalance(-11.58%) shows concentrated selling pressure, but the price is close to the recent low of 81.63, with sufficient buy orders below.

🎯Direction: Hold Cash (NoPosition)

The current structure is weak, with the price below EMA20(85.06), indicating a downward trend. However, the combination of negative funding rate and stable open interest makes any shorting risky of a squeeze. There are no clear structural reversal signals or volume support for going long.

Strategy: Wait. If the price can increase volume and recover to stay above 83.5 (the previous 4H low turned resistance), reassess long opportunities. If it breaks below 81.0 and open interest rises significantly (adding to shorts), a new downward wave may begin. The current risk-reward ratio is unclear; prioritize risk management.

Trade here 👇 $SOL

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