Recently, many people have been discussing SOL's trend, with many believing it is forming an ascending flag pattern and expecting a rebound. But I took a close look at the candlestick chart and found that the situation isn't as optimistic as it seems.

Honestly, the downward channel and the ascending flag pattern can look very similar visually, making them easy to confuse. But to master technical trading, you need to learn how to distinguish between them, because that determines your trading strategy.

In my trading experience, I’ve noticed that many people make the mistake of interpreting a chart pattern based solely on what it looks like. Chart analysis isn’t about intuition; it’s about identifying specific features of the pattern. When the market is oscillating, you must clarify whether it’s in a channel or forming a flag pattern. This is not a small matter, because the trading logic is completely different.

The key difference is this: if the price is still within a downward channel, as long as the channel hasn’t been broken, the trend should be considered bearish, regardless of how much the pattern resembles an ascending flag. Conversely, if an ascending flag pattern truly forms and breaks upward, only then can the trend be confirmed as bullish.

SOL’s current situation illustrates this point well. Before this recent decline, some people were calling it an ascending flag, but in reality, the entire move was still within a downward channel. So instead of blindly following the hype and expecting a rise, it’s better to first confirm whether the channel has been broken. That’s the correct way to judge. Technical trading isn’t about gambling on size; it’s about developing strategies based on pattern features.