Solana: $3.5M in SOL staked- But are bulls ignoring THIS bearish signal?

• Solana lengthy liquidations surged to $6.1 million, exposing bearish stress and flushing out overleveraged bullish positions.
• SOL didn’t reclaim the $193 resistance, with persistent spot outflows outweighing inflows and capping upside momentum.

A newly created pockets withdrew 20,009 Solana [SOL] (value $3.53 million) from Binance and instantly staked 19,875 SOL.

The pockets additionally despatched 134 SOL to a different staking tackle, elevating the entire staked holdings to 9,270.4 SOL, equal to $1.6 million. 

Naturally, this heavy staking exercise signifies long-term conviction. Nonetheless, market response has remained subdued.

Traders could interpret this as a quiet confidence constructing beneath the floor, though broader market alerts should align earlier than a powerful pattern emerges.

Are bulls getting trapped as lengthy liquidations surge?

On the twenty fifth of Could, Lengthy Liquidations reached $6.1 million throughout main exchanges, dwarfing simply $326K briefly liquidations. 

This stark imbalance displays the market punishing overleveraged bullish merchants amid current draw back worth motion.

Binance alone accounted for $2.76 million in lengthy liquidations, reinforcing the dominance of sell-side momentum. 

Traditionally, such liquidation skews typically sign a cooling market or potential reversal. Subsequently, this might both mark the tip of extreme lengthy hypothesis or trace at deeper bearish stress build up. 

The information emphasizes warning, particularly for these nonetheless closely positioned on the lengthy facet.

Supply: CoinGlass

Regardless of the shakeout, why are 69% of merchants nonetheless going lengthy?

In line with Binance’s Lengthy/Brief account knowledge, 68.95% of merchants held lengthy positions in SOL. The lengthy/quick ratio stood at 2.22.

This exhibits that the majority retail merchants stay optimistic, even after a heavy liquidation wave. 

Nonetheless, such lopsided sentiment typically precedes additional volatility or shakeouts. If SOL continues its sideways motion or drops decrease, these lengthy positions might as soon as once more face liquidation stress. 

It additionally suggests a disconnect between dealer expectations and precise worth momentum. Subsequently, regardless of bullish sentiment, the market nonetheless holds important danger for upside chasers.

Supply: CoinGlass

Will SOL flip $193 or fail once more as RSI cools?

SOL traded at $172.34 at press time, nonetheless struggling to interrupt previous the 0.786 Fib resistance at $193.

Regardless of its current rebound, momentum has stalled because the Relative Power Index (RSI) cooled to 61.87 from earlier highs. This stage nonetheless exhibits gentle bullish management, however not sturdy sufficient to verify a breakout. 

For bulls, reclaiming $193 is important to focus on the subsequent Fib zone at $229.46. Nonetheless, repeated failures right here might reinforce a range-bound construction and even invite draw back continuation.

Supply: TradingView

Why do outflows nonetheless dominate regardless of whale staking?

Spot market flows on the twenty fifth of Could revealed $158.93 million in Outflows in comparison with $141.42 million in Inflows, leading to a Internet Outflow. 

This divergence is important because it means that whereas some whales are accumulating, broader market members proceed exiting positions. 

Subsequently, the short-term worth construction stays pressured by ongoing profit-taking or repositioning exercise. 

Even with staking confidence rising, worth efficiency will stay muted until inflows sustainably outpace outflows. For now, sell-side alerts are nonetheless current, dampening the affect of bullish on-chain occasions.

Supply: CoinGlass

Is SOL prepared for a breakout or due for extra ache?

Whereas whale accumulation and staking recommend long-term confidence, the dominance of lengthy liquidations and protracted outflows level to near-term fragility. 

Except SOL flips the $193 resistance with sturdy momentum and inflows enhance, upside potential stays capped. 

Merchants ought to put together for extra consolidation or draw back if leveraged bulls proceed getting worn out.