Solana (SOL) Short vs. Long Trade Review: What's the Best Move Today?

Solana (SOL) is currently at $133.37, showing a slight increase of 0.09%. But is this the right time to jump into a short or long trade?

Solana (SOL) has dropped 24.4% over the past few days, a move that has put the token back in the sights of short traders, who are now heavily betting against the token.

Solana (SOL) price is trading at $133.37 and shows no changes in the past hour.

Solana (SOL) dropped 24.4% over the past few days, a move that has put the token back in the sights of short traders, who are now heavily betting against the token.

Data from blockchain analytics firm Glassnode shows that the total amount of leveraged short positions on Solana has now risen to $730 million.

This is a significant increase from the $300 million in positions that were opened just a few weeks ago, and it comes amid a broader shift in trader interest towards short-term bearish bets.

Solana’s price has dropped rapidly over the past few days, having slid around 60% from its 2023 highs.

The token hit a high of $140 on Wednesday morning before sliding as low as $110 on Thursday. It has since recovered a third of the drop, but the rapid move down has led to losses for many long traders.

As of Wednesday, the 50-day MA on Solana has also now dropped below the 200-day MA, completing what is known as a “death cross” pattern.

This pattern is often seen as a bearish signal, and it could lead to further declines in price.

If the 50-day MA manages to cross back above the 200-day MA, then it could also be seen as a bullish signal, and could lead to further gains for the token.

Solana (SOL) Price Analysis: Rising From Support

Solana slid to as low as $110 on Thursday morning, a move that saw it reach the lower boundary of the support zone that had been holding since early March.

From there, traders saw a triple bottom pattern form, as price bounced off the $110 level three times over the course of around two weeks.

The triple bottom is a reversal pattern that is usually seen after a period of bearish momentum, and it signaled that sellers were becoming exhausted.

Solana then rallied around 20% to reach highs of $132 on Friday afternoon, a move that saw price post a strong recovery from the lows.

This rally was driven by a break of the 23.6% Fibonacci level, which traders saw as opening the door for further gains in the short-term.

The next Fibonacci level to watch will be the 38.2% level, which comes at around $133.86 and could provide resistance to further gains.

Solana will need to break and close above the 50-day MA to confirm a return to bullish trends.

If the token can break back above the 200-day MA, then it could also be seen as a sign that the broader bear market is over.