{"id":89879,"date":"2025-05-10T11:02:09","date_gmt":"2025-05-10T11:02:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/89879\/"},"modified":"2025-05-10T11:02:09","modified_gmt":"2025-05-10T11:02:09","slug":"solanas-decisive-moment-as-bears-and-bulls-meet-170","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/89879\/","title":{"rendered":"Solana&#8217;s decisive moment as bears and bulls meet $170"},"content":{"rendered":"<ul>\n<li style=\"font-weight: 400;\">Solana broke free from weeks of sideways action with a clean reclaim of $170.<\/li>\n<li style=\"font-weight: 400;\">Is this the start of a larger trend reversal, or just a breakout fakeout?<\/li>\n<\/ul>\n<p>After weeks of range-bound chop, <a href=\"https:\/\/ambcrypto.com\/category\/solana-news\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">Solana [SOL]<\/a> snapped back with a vengeance, breaking out to a two-month high of $164 on the 8th of May.\u00a0<\/p>\n<p>The surge lit up the charts, pushing the RSI deep into overbought territory \u2013 music to the ears of bearish traders.\u00a0<\/p>\n<p>Sensing a potential blow-off top, short-sellers swarmed in, stacking up leveraged positions in hopes of catching a sharp reversal. What unfolded instead was a textbook short squeeze, catching late bears off guard.<\/p>\n<p>But was this just a volatility blip in a choppy range, or is SOL building the structural momentum needed for a full-blown trend reversal?<\/p>\n<p>The great bear fade<\/p>\n<p>As AMBCrypto previously <a href=\"https:\/\/ambcrypto.com\/can-solana-crack-the-170-barrier-yes-3-reasons-why\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">noted<\/a>, Solana\u2019s breakout above $170 wasn\u2019t just a random spike. It was underpinned by solid structural demand and clean technical alignment.<\/p>\n<p>Bulls executed with conviction at a key psychological resistance, flipping it into support and reclaiming a high-FOMO supply zone on strong volume. Consequently, nearly $20 million in short positions were wiped out.<\/p>\n<p>Lookonchain data captured one such <a href=\"https:\/\/x.com\/lookonchain\/status\/1920747464753057943?t=xtfEVdAH1K6YTTitvPqoYg&amp;s=19\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">aggressive bet<\/a>. A wallet deposited $1.21 million in USDC to open a 20x leveraged short on SOL at $164.9.\u00a0<\/p>\n<p>The position ballooned to 97.5k SOL, with a tight liquidation level at $172.96. If SOL inches higher, that trade risks a forced exit. Another short squeeze brewing? All signs point to yes.<\/p>\n<p>Solana\u2019s risk-zone: The price of conviction<\/p>\n<p>At press time, Solana traded at $171.87, setting up a potential liquidity trap for bears \u2013 again. <\/p>\n<p>But this rally\u2019s fate rests on bull conviction.\u00a0If FOMO fades, what was once bullish momentum could quickly flip into a sharp reversal.<\/p>\n<p>Signs of weakness are starting to emerge. Solana\u2019s <a href=\"https:\/\/studio.glassnode.com\/charts\/addresses.ActiveCount?a=SOL&amp;chartStyle=column&amp;s=1744271549&amp;u=1746863549&amp;zoom=30\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">active address count<\/a> has dropped sharply from 6.10 million to 5.40 million, representing an 11.46% decline in a single-day.<\/p>\n<p>On top of that, the MVRV (Market Value to Realized Value) ratio is now sitting comfortably above 1, suggesting that SOL is trading well above its realized cost basis.\u00a0<\/p>\n<p><a href=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/glassnode-studio_sol-market-value-to-realized-value-ratio-mvrv.png\" data-wpel-link=\"internal\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-490001\" class=\"wp-image-490001 size-full\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"Solana MVRV\" width=\"3200\" height=\"1800\" data-lazy- data-lazy- data-lazy-src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/glassnode-studio_sol-market-value-to-realized-value-ratio-mvrv.png\"\/><\/a><\/p>\n<p id=\"caption-attachment-490001\" class=\"wp-caption-text\">Source: Glassnode<\/p>\n<p>In other words, the market is flirting with overvaluation \u2013 prime conditions for a potential profit-taking cycle to kick in.\u00a0<\/p>\n<p>Shorts are positioning themselves based on these on-chain signals.\u00a0If <a href=\"https:\/\/studio.glassnode.com\/charts\/transactions.TransfersVolumeSum?a=SOL&amp;chartStyle=line&amp;s=1744271549&amp;u=1746863549&amp;zoom=30\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">structural demand<\/a> continues to weaken, they could capitalize on the potential downside.<\/p>\n<p>Solana is, without a doubt, in a high-stakes gamble. The momentum is leaning bullish, as market-wide FUD is at a lull.\u00a0<\/p>\n<p>But a full-on rally? That still feels like a stretch. Bears are still in the mix, waiting for the right signal to reverse the trend.<\/p>\n<p>\t\t\t\t\t\t\t\t\t\t\tNext: <a href=\"https:\/\/ambcrypto.com\/trump-binance-ties-face-scrutiny-using-the-familys-stablecoin-to\/\" rel=\"prev noopener\" data-wpel-link=\"internal\" target=\"_blank\">Trump-Binance ties face scrutiny \u2013 \u2018Using the family\u2019s stablecoin to\u2026\u2019<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Solana broke free from weeks of sideways action with a clean reclaim of $170. Is this the start&hellip;\n","protected":false},"author":2,"featured_media":89880,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[52,51,16,15],"class_list":{"0":"post-89879","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-business","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114483202883429685","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/89879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=89879"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/89879\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/89880"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=89879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=89879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=89879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}