SOL 4-hour chart observation: Oversold signal appears, where are the key levels?

Question

[Crypto World] Took a look at SOL’s 4-hour chart, and the recent price action is pretty interesting.

From December 5th at 4:00 PM to the early hours of the 6th, the price made a run, breaking above the high at 4:00 AM on the 6th. But now there’s been a big bearish candle, though it eventually closed bullish—at least the closing price held above the opening price.

Volume is a bit awkward here—it’s clearly shrinking. Both price and volume are trending down, and this combo usually means market sentiment is pretty lukewarm, with neither bulls nor bears being very active.

From a technical perspective: MACD doesn’t have a clear direction right now, but the histogram has been shrinking in the negative zone, which suggests that bearish strength is weakening and bulls might be reloading.

KDJ is pretty extreme—no golden cross or death cross signals, but the value is only 16, which is already in the oversold zone. That’s a typical bearish feature, but also pay attention to the price-volume divergence signal.

Specific levels:

Support around 130.0
Resistance at 147.0
Recent high reached 144.67
Recent low touched 123.86

If you’re looking to set up a position, you can reference: Entry range: 123.86 or 130.0 Stop loss below 123.24 Target between 144.67 and 147.0 For shorts, a safer stop loss would be above 145.39

Overall, we’re currently in an oversold + declining volume phase, so in the short term it’s best to wait for a clear directional signal.

Layer2Observer · Accepted Answer

The divergence between volume and price here is interesting, but be careful—oversold signals are often fakeouts. Let's see if it can really break through the 130 support before making any conclusions.

DefiPlaybook · Answer

KDJ is only at 16? This looks like a rebound is coming. Shrinking volume is actually a good signal. Let’s wait and see if it can hold at 130.

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Divergence between volume and price, a classic shakeout signal. The bulls are preparing for a big move.

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This round is just bottoming out, feels like it's building up strength. Don’t rush to catch the falling knife.

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Oversold is oversold, but without volume to support it, it’s just a paper tiger. Need to see when trading volume comes back to life.

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Bearish candle closes bullish? Holding the opening price? This is getting interesting—the bulls are still holding the line.

OnChainDetective · Answer

ngl that volume collapse is screaming manipulation patterns to me. traced through a few wallets and the transaction data literally doesn't add up—classic setup before a dump or coordinated pump. KDJ at 16 feels too convenient, statistically anomalous if you ask me.

GateUser-e51e87c7 · Answer

The divergence between volume and price is quite interesting; it feels like something is brewing.

4am_degen · Answer

Volume shrinks with oversold conditions; this is the time when it's easiest to get caught off guard... Let's wait and see if it can hold at 130.