Solana [SOL] traders are openly losing confidence in the market. However, another set of long positions may still be open. Hence, the question: Will SOL rebound or fall and experience further downside?
Solana sentiment and trading activity at YTD lows
At the time of writing, SOL’s trading volume had fallen to around $2.27 billion – Its lowest level in 2026. Meanwhile, the negative sentiment score also shot up to 14.05.
This has been the biggest wave of negativity around the token since November 2025.
Much of the frustration comes from the gap between Solana’s growing ecosystem and its price performance. Despite pickup around the tokenized stocks and RWA narratives, traders are yet to see light.
Note that extreme negativity can sometimes make room for an unexpected move up. As it stands, even a modest return of demand could lead to a positive price move.
There’s a catch though!
Solana’s derivatives market did seem inclined towards long positions though. In fact, the liquidation map showed around $7.4 billion in long exposure, compared to roughly $3.1 billion in shorts.
The largest long liquidation cluster was at around $61-$62, roughly 20% below the press time price.
Meanwhile, the long/short ratio across major exchanges had started recovering and was near 2.23 at press time. Traders appeared to be bullish again.
Now, none of this guarantees a sell-off. However, if SOL drops, crowded long positions could add to the pressure.
SOL holds, but the bullishness is starting to cool
Despite the heavy long positioning, Solana’s price chart seemed to give way to hope. SOL was trading near $77.95 at the time of writing. It had recovered from its June lows and was testing the $82-$83 area.
The RSI was in neutral territory rather than an overbought market. The MACD was also positive, with the MACD line at 1.91, above the signal line at 1.38.
However, the upward pace appeared to be slowing down.
A move back above the recent highs may be needed to rebuild confidence. Until then, crowded long positions could be a risk.
Final Summary
- SOL’s trading volume and negative sentiment are now at their worst levels of the year.
- Downside risk was also relatively higher at press time.
