The article discusses Solana’s recent price decline, dropping from a range of $170-185 to around $156, marking an 11.54% decrease. This drop has turned Solana’s net profit/loss negative for the first time in two months, leading to significant realized losses estimated at $323 million. Many investors are now either selling or feeling pressure to surrender.
Historically, similar situations have been precursors to significant price drops, raising concerns about another potential major sell-off. The current sentiment is bearish, as the market lacks confidence in a bounce-back without strong bullish catalysts.
Short traders have gained the upper hand, leading to liquidations of long positions. The article suggests that if Solana doesn’t regain support and muzzles fear of further losses, it could fall to $150 next. A renewed buying interest is crucial for restoring confidence; failing that, the bears may drive prices down further, leaving Solana in a precarious position.
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