Solana Price Pullback,the once high flying Ethereum competitor,is facing renewed bearish pressure. With more than $1.2 billion in short bets stacked against it,traders are signaling growing skepticism about the token’s short term trajectory.From weakening momentum indicators to on-chain signals flashing red,concerns over a deeper Solana price pullback are escalating.
Solana Price Slides from Recent Highs
Solana has recently retraced from its local peak near $206,dropping to around $181–$184 as of today.This represents a 6% drop in the last 7 days and nearly a 12% decline from its July highs.The pullback comes amid broader crypto market cooling and a sharp shift in trader positioning.
$1.2 Billion in Short Positions Reveal Bearish Tilt
Data from derivatives markets shows over $1.2 billion in short positions placed against Solana,dwarfing the $900 million in longs.This imbalance highlights traders’ expectations that the token could fall further in the near term.
This aggressive shorting activity coincides with other bearish technical and on chain trends,suggesting that the current dip might not be over.
SOPR Signals Sell Pressure is Rising
The Spent Output Profit Ratio (SOPR), a key on chain metric that tracks whether coins are being sold at a profit or loss,has declined from 1.04 to around 1.00.This suggests holders are now selling near break even prices typically a warning sign of market stress.
This SOPR compression implies that investor conviction is weakening and more selling could follow if prices dip below key support.
Technical Levels to Watch:All Eyes on $175
Chart analysts point to $175 as a critical support level.This area aligns with the 38.2% Fibonacci retracement from Solana’s rally between $125 and $206.A sustained drop below this threshold could trigger a sharper correction toward $162 or even $147.
Adding to this bearish outlook:
- The Spot Taker CVD (Cumulative Volume Delta) is trending negative,showing more aggressive selling than buying.
- The MACD and RSI indicators have turned downward,confirming fading momentum.
Ecosystem Activity Weakens but Long Term Strength Remains
Solana’s network growth is slowing.New wallet creation has dipped and DEX trading volume is down,hinting at reduced user engagement.Meanwhile,long term holders have begun moving coins,as shown by a spike in Glassnode’s Liveliness metric often a sign of profit taking.
Still,the fundamentals remain solid:
- Total Value Locked (TVL) remains robust at around $9.9 billion.
- Solana handles over $2.7 billion in daily DEX volume,positioning it as a key player in DeFi despite short term volatility.
Bearish vs Bullish Outlook:What’s Next for SOL?
Bear Case
If Solana breaks the $175 support with high volume,the path toward $162–$147 becomes more likely.Combined with weak SOPR and negative CVD,this could accelerate a cascade of sell offs and liquidations.
Bull Case
If Solana holds $175 and reclaims the $184–$190 resistance zone,it could trigger a short squeeze.In July,similar bearish positioning led to sharp reversals as shorts were forced to cover.
Additionally,token launches and developer activity remain high,with over 53,000 new tokens deployed daily on Solana,highlighting persistent growth and innovation in its ecosystem.
Final Thoughts:Tipping Point Approaches
With $1.2 billion in short positions,flatlining SOPR and weakening momentum,Solana is at a crossroads.Traders and investors should closely monitor:
- The $175 support level
- On-chain indicators like SOPR and CVD
- Activity trends in DeFi and new wallet creation
If the bulls manage to reclaim control a breakout above $190 could revive upward momentum.Otherwise,expect a deeper dip into the $160s range.