Solana Faces More Pain as Two Bearish Crossovers Loom — But the Worst May Be Over
Solana's price is declining amid looming bearish crossovers, but derivative data suggests the selling pressure might be limited.Summary
Solana (SOL) has experienced a significant drop, losing 5.3% in 24 hours and over 27% in 30 days. The bearish setup is confirmed by technical indicators, as the 50-day EMA is nearing a cross below the 100-day EMA, and the 20-day EMA is approaching a cross below the 200-day EMA.
However, derivative data suggests the recent drop was primarily driven by a long squeeze, with $1.45 billion in shorts compared to only $103.9 million in long leverage remaining on Bybit. This imbalance means any small price rebound could trigger a short squeeze. Furthermore, on-chain data shows that long-term holders are not panic selling, as net outflows have decreased significantly.
Key price levels to watch are support at $163 and $155; a drop below $155 could invalidate the limited-downside theory. Resistance lies at $180 and $191, with a break above $191 potentially leading to a sharp rally toward $200 and $222. While the immediate path favors sellers, the exhaustion of long positions suggests the worst of the correction may be near.
(Source：BeInCrypto)