Solana Faces $6 Billion Short Bet Amid 12% Price Drop
Solana (Sol) has faced increasing selling pressure since climbing to an all-time high of $264.63 on November 24. At press time, the token’s price has fallen by 12% and is priced at $232.72.
The downward trend has prompted a surge in short positions, with traders betting on further gains as bullish sentiment in the broader cryptocurrency market wanes. SOL price reduce.
Solana Price Dropped as futures Traders bet on rebound
According to Coinglass, in the past 24 hours, Solana short position total value It has reached $6 billion, significantly exceeding the long position of $5.38 billion. This indicates strong bearish sentiment among traders.
As of this writing, SOL’s long-to-short ratio is 0.96. An asset’s long/short ratio measures the ratio of open long positions (bets that the price will rise) to short positions (bets that the price will fall) in a given market.
When the ratio is below 1, it indicates that there are more short positions than long positions, indicating that there are more traders betting that prices will fall than those expecting prices to rise.
Furthermore, SOL’s negative weight sentiment confirms the bearish bias towards it. As of this writing, The value is -0.40.
A weighted sentiment indicator for an asset tracks the overall market sentiment toward it. When an asset’s weighted sentiment value is negative, most social media discussions are driven by negative sentiment. This indicates that market participants expect prices to fall and gradually reduce trading activity to prevent losses.
SOL Price Forecast: 20-Day EMA is Key
On the daily chart, SOL price It is expected to fall below the 20-day exponential moving average (EMA). This indicator tracks the average price of an asset over a 20-day period, placing more emphasis on recent prices.
It has been acting as a dynamic support level for SOL since October 11th. Currently, the 20-day EMA provides support at $226.52, and a decisive move below this level would confirm a shift to bearish momentum. If this happens, the SOL price drop could reach $205.56.
On the other hand, if market sentiment becomes more bullish, The price of SOL may increase to Its all-time high is $264.63.
Disclaimer
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