Solana (SOL) experiences a sharp decline of 6% today, May 19, with the liquidation of long positions worth $24 million, 80% of which were long positions.
- If the price falls below the $160 level, it may face liquidation of long positions worth $111 million around the $158 level, which could increase selling pressure.
- The long/short ratio has decreased to 0.89, indicating that traders are leaning towards opening short positions and reinforcing the downward trend.
- If the price rebounds to $164, this could lead to the closure of short positions worth $139 million (short squeeze), potentially boosting the upside.**
- Market sentiment is currently bearish, with the RSI index falling to 52, and if it drops below 50, the price may head towards support at $133.
- The near-term upside target is to test resistance at $174, but this depends on the price stabilizing above $160 and improving market conditions.
Technical Outlook:
- Critical support: $160, and if broken, the price may drop to $133.
- Major resistance: $174, and if breached, SOL may target the $200 level.
- Technical indicators such as RSI and AO indicate weak bullish momentum currently.