Recently, I saw a quite typical case that is worth mentioning.

Someone has a long position in SOL at a high level, with a liquidation line around 112. At around 2 AM yesterday, SOL was still floating at 137, and I suggested opening a short hedge, but it wasn't heeded. Today it has directly dropped to 125.

Next, keep a close eye on the level of 120—once it breaks down, it's not surprising to see it accelerate down to 114 or even 104. If the forced liquidation line doesn't drop below 100? Then the position is really precarious.

Continuously averaging down the cost is actually quite dangerous. After averaging down, one should reduce positions once it rebounds to the range of 137-144. Just averaging down without cutting positions will lead to a heavier load, and if it really blows up, the losses will be even greater. Especially now, those who have long positions in SOL and are being forcibly liquidated in the 110-100 range are within the retracement range this month.

This rebound hasn't even touched 150; the next phase is likely to oscillate between 144 and 100. 150? It's basically the ceiling for this round.

Surviving is more important than anything else, don't gamble. Japan hasn't raised interest rates yet, but if they really do this month, it might not hold even at 100.