SOL/USD - Technical Scenario of the Week Solana is currently moving within an interesting price range. If the price breaks above the $127.30 mark, the current 1-2 setup on the downside would become invalid. My scenario for this week: The price will remain trapped in the existing sideways range for the time being. No major decisions are expected in the next few days. This means we could consolidate sideways for some more time before the next significant move. For traders: The coming days should be watched closely – the next directional decision could follow soon.

The market always has its own rhythm; the question is whether you have the patience to wait for your own train. Recently, the market has been quite lively—ZEC suddenly gained momentum, SOL fluctuated up and down, and various AI concept coins experienced rollercoaster-like movements. On the surface, it looks chaotic, but if you dive into on-chain data, you'll find that big funds are actually deploying in an orderly manner. Many people have misconceptions about a bull market, thinking that all coins rise and fall together. In reality, that's not the case at all. A bull market is a carefully orchestrated "rotation feast," with different phases and sectors taking turns. I recently analyzed some market signals and on-chain data to help clarify the thinking process. **Seemingly chaotic, but actually undercurrents are surging** The most direct signal is: Bitcoin's dominance is weakening. Data shows that BTC's market share has fallen from its high point to 57.7%, while Ethereum's dominance has rebounded to 14.0%. What does this mean? Capital is continuously flowing out of Bitcoin. Looking at some phenomena during this period: privacy coins are rising against the trend, activity in the SOL ecosystem is increasing, and AI concept tokens are frequently moving. These are not random fluctuations but early signs of capital rotation. Experienced traders know that capital flows follow a strict law—moving from lower risk to higher risk. Even more interesting are the moves of large holders. In August, a Bitcoin whale address that had been dormant for seven years suddenly woke up, dumping Bitcoin worth $2.59 billion in one go, then heavily deploying Ethereum and related derivatives. Such large-scale fund transfers are usually early indicators of a market style shift. **The rotation path of altcoin explosions** Looking at historical patterns, the start of the altcoin season is relatively fixed. The first phase is Bitcoin playing the solo. During this time, institutions and big players focus on buying Bitcoin, and small coins have no presence. In the second phase, after Bitcoin reaches a certain height, it gradually deflates the bubble. Large funds begin shifting in batches to second-tier mainstream coins. Ecosystem tokens like Ethereum and SOL start to rise, and market sentiment shifts from "single" to "diverse." The third phase is the real explosion of the altcoin season. Various small and medium coins take off on the wave, generating the most profit and also the highest risk. During this stage, hot spots rotate rapidly—today it's privacy coins, tomorrow it might be Layer2 solutions. The fourth phase is peaking and retreating. The bubble gradually bursts, hot money disperses, and finally, funds return to Bitcoin for safety. We are currently roughly in the late second phase. The decline in BTC's market share and the rise of ETH's dominance are signs of this stage. As long as there are no black swan macro events, the arrival of the third phase is just a matter of time. **How to find opportunities amid rotation?** First, don't be greedy. Each phase has its main players. Missing one phase is okay; the key is not to buy at the top. Observe on-chain large holder positions and exchange inflow/outflow data—these are often more honest than technical charts. Second, pay attention to capital flows. When you see institutions making large transfers into a certain blockchain's ecosystem coins, or project wallets in a specific sector making big moves, that's a signal. No need to guess; data speaks for itself. Finally, be patient. Good rotation opportunities don't only appear once; each cycle repeats itself. Instead of rushing to buy at the high, wait until your turn in the next cycle. No matter how temperamental the market, the logic always remains consistent.