Solana Faces $6 Billion in Short Bets as Price Drops 12%

Short bets on SOL have increased to $6 billion, surpassing long positions at $5.38 billion, according to Coinglass data. The long/short ratio now stands at 0.96, suggesting that more traders are placing bets for additional price declines than on a recovery.

Market sentiment also paints a gloomy picture. Solana’s weighted sentiment, which measures investors’ attitudes, currently stands at -0.40. Readings below zero indicate that traders are becoming increasingly conservative. Social media discussions reveal bearish expectations and lower trading volumes.

On the technical front, the 20-day Exponential Moving Average (EMA) is currently at $226.52. It has been acting as a crucial support level since October 11. Analysts warn that a decisive drop below this level may confirm a bearish trend. This could push SOL’s price down to $205.56.

However, a shift in sentiment could turn the tide. If bullish momentum builds, SOL might aim for a recovery toward its previous peak of $264.63.

For now, traders are closely watching these levels as Solana navigates increased market pressure and heightened uncertainty.