Many traders are struggling on the chart: should they cut losses on their SOL holdings or continue to hold? Will tonight's market surge directly push back to the psychological level of 134, or will it continue to probe down to 123? Instead of guessing blindly, it's better to clarify the logic.

**Market Sentiment Has Shifted**

Recently, statements from US SEC officials regarding a "powerful financial monitoring tool" have dealt a heavy blow to the entire crypto community. Decentralization and privacy protection are core demands of this industry, and the word "monitoring" undoubtedly raises concerns among large funds. Although subsequent comments clarified that "privacy does not need to be sacrificed," the public opinion has already formed, and market sentiment is inevitably impacted. This will directly trigger risk aversion and selling pressure, serving as short-term bearish signals. Both the news and technical aspects are resonating here, indicating a "pressure" signal.

**A True Reflection of Technicals**

The 4-hour chart indeed looks bleak. The downtrend remains clearly visible, with prices being suppressed by multiple key moving averages. In this pattern, every rebound is difficult to sustain and often just sets the stage for deeper declines afterward. The candlesticks attempting to push upward are repeatedly pushed back, showing that the bulls lack sufficient strength.

Key levels to watch: above, 134 is the "gate of death" for a rebound to hold; 140 is the recent ceiling that is hard to break through. Downward, 127 is the first important support; if it breaks effectively, the price is likely to slide toward 123, and possibly even reach the bottom line at 112.4. Currently, SOL is oscillating around 126, in a sensitive zone.

Considering the negative outlook from the news and the weak technical pattern, there is indeed short-term downward pressure. Trading should be more cautious, focusing on whether key support levels can hold.