Key Takeaways
- SOL fell 5% to $68.78, testing the lower end of its June trading range
- A whale opened a 20x short on 554,680 SOL near $69, per Lookonchain
- The long-to-short ratio dropped to 0.94, the lowest in over a month
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Solana drops 5% to $68 as whale short and bearish bets pile up
Solana fell 5.2% to $68.78 as derivatives data showed traders piling into bearish bets and a whale opened a $38 million short position.
"Bears are in control until SOL reclaims $78, and the whale short near $69 adds another layer of overhead pressure," Sjuul, an analyst at AltCryptoGems, said in a post on X on June 22.
The long-to-short ratio on Solana fell to 0.94 on Wednesday, approaching its lowest level in more than a month, according to CoinGlass. A reading below one indicates short positions outnumber longs. Funding rates turned negative on Monday and stood at minus 0.0080% on Wednesday, meaning shorts are paying longs to maintain their positions. On-chain data from Lookonchain showed a whale opened a 20x leveraged short on 554,680 SOL, worth roughly $38.15 million, near the $69.23 price point.
The $75 to $78 zone represents the critical resistance area that bulls must reclaim to shift momentum, according to multiple analysts. A break above $78 could open a path toward $85 to $90, while rejection risks a retest of $64 and then $60. If $60 fails, the next major support sits in the $55 to $40 range, based on cycle-level analysis.
The selling pressure on Solana mirrors a broader risk-off move across crypto and equities. Bitcoin slid toward $62,000 on Wednesday, down 4.9% on the week, as a renewed rout in semiconductor stocks pulled risk assets lower for a second day, according to CoinDesk. The Philadelphia Semiconductor Index fell 7.9% on Tuesday, with all 30 members declining.
Solana's technical indicators reflect the bearish bias. The MACD histogram registered at plus 0.79 on Wednesday, suggesting downward momentum may be decelerating, but the RSI at 43 remains below the neutral 50 level, per TradingView data. The 50-day, 100-day, and 200-day exponential moving averages all sit above the current price, forming a dynamic overhead resistance band between $76 and $83.
On the upside, the first reclaim target is $70 to $72, followed by the critical $75 to $78 resistance zone. The upper Bollinger Band sits near $75.69, aligning closely with that resistance area. On the downside, immediate support emerges at $68, with the next floor at $64 and then $60.
Spot Solana ETFs recorded a mild inflow of $137,290 on Tuesday, according to SoSoValue, offering a small counterpoint to the bearish derivatives positioning. If that inflow trend intensifies, it could provide a catalyst for a recovery.
This article is for informational purposes only and does not constitute investment advice.
[1] Will Solana price break below $69 as bearish bets pile up?[2] Solana (SOL) Price: Why $78 Is the Make-or-Break Level Bulls Can’t Afford to Lose[3] Bitcoin drops toward $62,000 as the chip selloff deepens for a second day - CoinDesk[4] Solana Price Prediction: SOL Drops Towards $68 as Bulls Face $75 Resistance and Deeper $40–$30 Risk - Brave New Coin[5] Solana Price Forecast: Bearish derivatives and weak momentum put key support at risk - Mitrade
