Solana faces $6 billion short bet as price drops 12% from peak
2024-11-27

Solana (SOL) has faced increased selling pressure since it climbed to an all-time high of $264.63 on November 24. Exchanging hands at $232.72 at press time, the coin’s value has since dropped by 12%.

With waning bullish sentiment in the broader cryptocurrency market, this downward trend has prompted a surge in short positions, with traders betting on a further SOL price drop.

According to Coinglass, over the past 24 hours, the total value of Solana short positions has reached $6 billion, significantly outpacing long positions at $5.38 billion. This indicates a strong bearish sentiment among traders.

On the daily chart, SOL’s price is poised to break below its 20-day Exponential Moving Average (EMA). This indicator tracks the asset’s average price over 20 days, giving more weight to recent prices. 

Since October 11, it has consistently served as a dynamic support level for SOL. Currently, the 20-day EMA provides support at $226.52, and a decisive break below this level would confirm the shift toward bearish momentum. If this happens, the SOL price drop may reach $205.56.

On the other hand, if market sentiment becomes more bullish, SOL’s price may rally toward its all-time high of $264.63.