Recently, many people have been asking about technical analysis of SOL, especially regarding the concept of POC. Actually, the meaning of POC is quite simple: it is the price point with the highest trading volume within a certain period, representing the market participants' most active price.

In plain terms, POC is a line that reflects the fair value of the market. You can think of it as a magnet, attracting a large amount of trading activity. On the volume distribution chart, this line is usually highlighted so you can quickly see where the market hotspots are.

In practical trading, POC has many uses. First, it can help you identify support and resistance levels. If the price is trading above the POC, then the POC may serve as a support point, providing support when the price pulls back. Conversely, if the price is below the POC, it may become a resistance level. The principle is straightforward—where market participants are most active, is often where the price is most likely to reverse.

When I use POC myself, I mainly rely on it to confirm the trend. For example, if the price stays above the POC and is continuously supported, it usually indicates that an upward trend may continue. Conversely, if the price faces resistance below the POC, caution is advised for potential downward risk.

POC can also be referenced in trading decisions. When the price approaches the POC, I pay close attention to the market reaction to see if a reversal or breakout might occur. Sometimes, the POC is a critical decision point, determining whether you should buy or stay on the sidelines.

Honestly, mastering the POC tool is quite helpful for technical analysis. It allows you to see the true level of market participation more clearly, rather than just looking at surface-level price movements.