- Solana did not act sideways for several weeks with a clean recovery of $ 170.
- Is this the beginning of a bigger trend reversal or a brake out fake?
After a few weeks of cutting, Solana (SOL) withdraws from revenge and came out at $ 164 for two months on May 8.
Surges, the charts were brightened, and the RSI was pushed deep into the excess zone, and the music was pushed into the ears of the weak merchant.
The short sellers, who detect the potential of the potential Blowoff, have built a leverage position to catch a rapid reversal. Instead, it was a short pressure on the textbook, and it was to catch a late bear from the guard.
But was this just an uneven volatile blip, or is it building a structural exercise required for a full -fledged trend reversal?
Great bear disappears
As AmbCrypto mentioned earlier, Solana’s breakout is not a random spike of $ 170 or more. It was supported by solid structural demand and clean technology alignment.
Bulls was convicted of major psychological resistance, supported it and regained high supply zones with strong volume. As a result, almost $ 20 million was erased from a short position.
Lookonchain data captured such an aggressive bet. The wallet deposited $ 1.2 million in USDC and opened 20 times of leverage for $ 164.9 in SOL.
The location is 97.5K, and the coordination level of $ 172.96 is hard to liquidate. If the SOL inch is higher, the transaction is dangerous for forced outlets. Another short weaving brew? All signs point to examples.
SOLANA’s Dangerous Zone: Guilty ruling price
Solana was traded at $ 171.87 in the press time and reset the potential fluid traps of Bears.
But the fate of this rally depends on the bull guilt. If FOMO disappears, the momentum of strong strength can be quickly flipped to a rapid reversal.
Signs of the weakness began to appear. The number of active addresses in Solana dropped sharply from 6.1 million to 5.4 million, and a day decreased 11.46% per day.
In addition, the MVRV ratio is now sitting more comfortably than 1, suggesting that SOL is trading much higher than the realization cost.
Source: Glass Node
In other words, the market is tempted by overestimation.
shorts Be Positioning themselves Based ~ These to-chain signal. If structural demand continues to weaken, you can take advantage of potential disadvantages.
Solana is undoubtedly in high stake gambling. The momentum is optimistic as the entire FUD collapses.
But the rally that came to full? It still feels like a stretch. The bear is still mixed and is waiting for the correct signal to return the trend.