Solana Whales Bet Against Bullish Recovery
1min read Solana (SOL) investors are closely monitoring the cryptocurrency's price action, with a significant whale transaction and bearish sentiment among traders. According to on-chain data from Coinglass, the Long/Short ratio for SOL stands at 0.77, indicating that 57% of top traders hold short positions, while 43% hold long positions. This strong bearish sentiment is supported by the presence of $100 million worth of short positions at $235, which could hinder SOL's price rebound to new all-time highs.
Despite the bearish sentiment, some analysts believe that potential long-term holders are accumulating SOL during the current price decline. However, intraday traders seem to be capitalizing on the prevailing market sentiment, leading to notable bets on short positions. Bulls appear exhausted, with only $40 million in long positions at the $215 level, which could be easily liquidated if the sentiment remains unchanged and prices continue to decline.
In the realm of Solana ETFs, Cboe BZX Exchange Inc. has filed 19b-4 submissions for various Solana ETFs, signaling a renewed interest in crypto investment vehicles. The potential issuer noted that all of these filings were pulled at the request of the SEC, reflecting the ongoing regulatory scrutiny that these financial products face. The classification of Solana as either a commodity or security presents a significant challenge in the approval process, but insiders suggest that the newfound optimism surrounding crypto may soon pave the way for a successful approval.
The recent whale transaction and bearish sentiment among traders, along with the regulatory hurdles for Solana ETFs, highlight the challenges that SOL must overcome to rebound to new all-time highs. As the market evolves and regulatory appetites change, investors will closely watch the developments surrounding Solana and its potential ETFs.
