The crypto market develops a growing negative outlook toward Solana (SOL) as betting activity against its price rises among trading professionals. According to Coinalyze data the SOL long-to-short ratio for futures dropped to 2.5 from 4 during February 17 which demonstrates rising bearish market sentiment.
The perpetual futures trading platform at Binance experienced a major rise in bearish investor positions against SOL according to cryptocurrency influencer Tyler Durden. Short positions on Binance’s futures exchange have reached 4-to-1 ratios which indicates a strong bearish attitude towards SOL.
The market has decided it is angry at Solana.
Positions on the book..
Shorts 4:1 Longs pic.twitter.com/SGn7AAs7AL
— Tyler (@TylerDurden) February 17, 2025
Perpetual futures contracts also known as “perps” function as derivatives that enable traders to establish long or short positions with indefinite trading expiration dates. Market participants are taking increased short positions because they believe SOL prices will continue declining.
Solana Declines 6% As Memecoin Volatility Sparks Concern
SOL experienced a market decline of 6% as CoinGecko shows at this writing. Many experts point to the wild memecoins in the Solana platform as the main reason behind the present market downturn that followed this period of intense market volatility.
The massive investor interest in memecoins BONK and WIF caused Billions of dollars worth of capital injection which boosted both Solana’s network transactions alongside trading volume metrics. The memecoins based on dogs rose to $4 billion market capitalization during their peaks which drew substantial involvement from traders and speculators.
The exposure of insider trading and rug pulls and suspect token distribution practices has severely harmed the reputation of Solana-based memecoins which are now part of an overall market downturn for SOL.
be very careful buying $SOL dip
yes, its been one of top gainers/performers of this cycle, but the amount of shit thats coming up to the surface now is really badly damaging to SOL ecosystem
the response from Jupiter team is a massive joke but lets see if Meow can top it
— RunnerXBT.eth (@RunnerXBT) February 16, 2025
Experts predict that the unfavorable attitude toward Solana trading will survive the initial few months because traders need time to restructure their operations. The main criteria for continued network success over the long term will involve resuming investor trust and establishing proof of sustainable growth outside memecoin popularity.Market observers track SOL’s price and trading volumes to discover if this bearish pattern keeps growing or if price recovery could occur.
— Westie 🟪 (@WestieCapital) February 17, 2025
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