Solana surged past $170, triggering a major short squeeze.
On-chain data shows rising risks as active addresses sharply decline.
Bulls hold momentum, but bears wait for signs of weakness.
Solana — SOL, has thrown a curveball at traders. After weeks of dull, sideways action, price suddenly roared back to life. On May 8th, Solana surged to $164, marking a two-month high that stunned both sides of the market. Bears were caught snoozing as the move sparked a frenzy. Leverage flooded in. Charts flashed warning signals. Now, bulls and bears stand locked at $170—a battlefield dripping with tension, conviction, and fear.
https://twitter.com/MrAduitore/status/1920843873275834432?t=lDEHiUxfAJi1dMdGKysd3g&s=19 Bears Ambushed, Bulls Roar Louder
SOL’s recent rally was well deserved. Behind the curtain, demand brewed quietly. Smart money saw it. They struck hard. The move above $170 wasn’t just a lucky break—it was precision. Bulls flipped a tough resistance into support, reclaiming a major high-FOMO zone. Volume backed the breakout. So did the data. The shorts got crushed. Almost $20 million in leveraged bets vaporized in hours.
One wallet dropped $1.21 million in USDC, opening a 20x short at $164.9. That ballooned into 97.5k SOL. Liquidation loomed at $172.96. Every tick higher now presses on that position. The pressure feels like a coiled spring—ready to snap again. This squeeze wasn’t random. It was a statement. Bears got outmaneuvered. But they haven’t disappeared.
Momentum or Mirage? The Market Decides
At press time, SOL was trading near $171.87. Bulls have the edge, but barely. The mood? Uneasy. A single misstep could flip strength into weakness. Already, warning lights are flickering. Solana’s active addresses dropped from 6.10 million to 5.40 million—an 11.46% dive in one day. The MVRV ratio, a measure of value vs. cost, also whispers caution, now sitting well above 1. That means many holders are sitting on juicy profits.
Temptation to cash out could grow louder. When that happens, rallies stall. Profit-taking becomes a domino effect. Bears see it too. They’re reloading. Their logic? Structural demand looks shaky. On-chain signals hint at overvaluation. If price stumbles, shorts will pounce. Bulls must hold the line. This is a poker game with millions at stake. Bulls grip their hands tight. Bears eye the flop. Every candle, every tick, matters now.
For now, the battlefield is tense. Bulls have muscle. Bears have patience. Both sides know what’s at stake. The price holds firm at $170. But behind the candles, a storm brews. If buyers stay brave, Solana could launch higher. If not, the trapdoor could swing open fast. In this high-stakes standoff, only one side walks away smiling.
