Solana Price Faces a Bull Trap as 50% Holders Exit
Solana's price breakout suggests 50% upside, but conflicting signals from exiting long-term holders and rising leverage raise significant bull trap risks.Summary
Solana's price recently broke above the neckline of an inverse head-and-shoulders pattern on the 12-hour chart, suggesting a potential trend reversal with over 50% upside potential, targeting near $129.78 if key resistance is cleared.
However, this bullish technical signal is contradicted by bearish on-chain indicators. A hidden bearish divergence is forming, and critically, the supply held by long-term holders has dropped by nearly 50% between February 8 and February 20, indicating experienced investors are exiting or slowing accumulation.
Furthermore, derivative data shows rising open interest and positive funding rates, confirming that leveraged traders are entering long positions based on the breakout. If this breakout fails, these leveraged longs could be forced to sell, accelerating a downside move. Key confirmation levels are $85.70 to weaken the divergence, $91.09 to absorb overhead supply, and a failure below $78.88 to signal the trap is forming.
(Source：BeInCrypto)