【$SOL Signal】Long! 1H breakout and retest confirmed, main force clearly defending the market

$SOL The 1H timeframe has experienced a volume breakout and is now in a healthy retest phase. The 4H timeframe has already stabilized above the EMA20 (83.22), forming a short-term upward trend. Although the current 1H buying ratio is relatively low, open interest (OI) remains stable, and negative funding rates suggest bearish pressure. However, the price remains unusually resilient, indicating a typical short squeeze ahead. The main force is accumulating large buy orders in the 86.3-86.4 range to defend the market, refusing a deep correction.

🎯Direction: Long (Long)

🎯Entry/Order: 86.30 - 86.40 (Reason: Dynamic support at 1H EMA20 + dense buy orders on the order book )

🛑Stop loss: 85.65 (Reason: Break below the key 1H low at 85.76 and EMA50 support )

🚀Target 1: 87.30 (Reason: Intraday previous high resistance level )

🚀Target 2: 88.50 (Reason: 4H previous wave high and 1.382 Fibonacci extension level )

🛡️Trade management:

- Position size suggestion: Light position to standard size (Reason: 1H and 4H trends are resonating, but overall market sentiment should be monitored )

- Execution strategy: After the price reaches 87.30, reduce position by 50% and move stop loss to entry point (break-even). Hold the remaining position to target the second goal. If the price retests the entry zone and breaks below 86.20, exit all and observe.

Deep logic: The key point lies in capital behavior. When the price sharply surged from 85.76 to 87.28, open interest (OI) also surged, with buy orders accounting for up to 60%, signaling active buying by main funds. Subsequently, the price retreated, and OI remained stable (not significantly decreased), indicating that long positions have not been largely closed but are waiting for the next move. The 1H RSI (66.68) has fallen from overbought territory to a healthy zone, preparing for another rally. The order book shows dense buy walls exceeding 25,000 SOL below 86.36, forming strong support. Coupled with negative funding rates, short positions are paying costs to hold, and once the price moves again, a short squeeze is highly likely.

Trade here 👇 $SOL

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