Altcoins News

Story: Solana Faces Short Squeeze Fears as Bearish Bets Grow

By Evie Vavasseur

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Solana (SOL) has been a focal point of traders, with growing concerns around a potential short squeeze as the network’s Long/Short Ratio hits a 30-day low.

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Short Squeeze Fears Arise as Sentiment Shifts Bearish

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As of May 13, 2025, Solana’s Long/Short Ratio dropped sharply to 0.8653, its lowest level in the past month.

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The dramatic decline suggests that traders are now more bearish on Solana’s price outlook. Historically, such a sharp divergence in positions has often been a precursor to…

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Strong Network Activity Contrasts with Bearish Sentiment

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Despite the rising number of short positions, Solana’s on-chain activity continues to show strength.

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This surge in volume underscores Solana’s continuing appeal due to its low transaction fees and high throughput, making it an attractive platform for traders, and liquidity…

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The stark contrast between Solana’s strong fundamentals and the rising short interest could point to a mispricing of the asset.

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At the time of writing, Solana’s price is hovering around $174.53, consolidating after a sharp rally earlier in May.

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However, the Moving Average Convergence Divergence (MACD) remains in bullish territory, with a clear divergence above the signal line, suggesting that upward momentum hasn’t…

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Looking Ahead: Key Price Levels for Solana

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Solana’s price outlook will largely depend on whether it can maintain its position above key support levels.

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In either case, the growing short interest combined with strong on-chain performance suggests that traders will be closely watching Solana’s next moves, as the potential for a…

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As the situation develops, both long-term investors and short-term traders will need to stay alert to any signs of a market shift, as the combination of high volatility and…

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