Recently, the price movement of Solana (SOL) has shown obvious characteristics of the trading range, frequently fluctuating between 196 and 205 USD in the short term. This price pattern reflects the current market participants' cautious and wait-and-see attitude towards SOL.

From a technical analysis perspective, SOL is facing clear upper and lower boundaries: the resistance level around $205 is quite strong, representing a recent high; while the support level around $196 shows some resilience, corresponding to significant Fibonacci retracement levels. Within this range, various technical indicators also show typical oscillation characteristics: the MACD indicator is close to the zero axis, trading volume is below average, and the short-term moving average is tending to flatten out.

From a fundamental perspective, although there are some small-scale positive developments within the Solana ecosystem, such as new trends in DeFi projects, these factors have not yet been enough to push the price to break through the current trading range. Meanwhile, the market remains vigilant about the network stability issues that Solana has faced in the past. It is worth noting that the entire cryptocurrency market seems to be waiting for a larger catalyst, such as the approval results of the Bitcoin ETF.

For traders, adopting a range trading strategy may be wiser under the current market conditions. Consider reducing positions or cautiously shorting when the price approaches $205, while small-scale long positions can be established when the price dips to around $196, but be sure to set stop-loss orders to manage risk.

Investors should closely monitor two key breakout signals: if SOL can stabilize and break through $205 with high trading volume, it may signal a new round of upward movement; conversely, if the price falls below the $196 support level under heavy selling pressure, it may face further downside risk.

Overall, in the absence of significant positive or negative news, SOL is likely to continue fluctuating within this trading range for a while. Investors need to be patient and wait for clearer market direction signals to emerge.