SOL Token Drops 12% as Short Positions Surge and Trading Volume Hits $9.91 Billion

SOLUSDT experienced a sharp decline in the past 24 hours, with the price dropping by 12.27% to 82.45 USDT on Binance. The downturn is primarily attributed to a combination of factors: increased short positions as indicated by negative funding rates and rising open interest, significant outflows from Solana-linked investment products and ETFs, and a breakdown of key technical support levels, including the 200-day EMA and a major trendline. Additional pressure was noted from bearish technical patterns and broader market risk-off sentiment, as large investors shifted towards traditional assets like Gold and US Treasuries. Despite a whale staking 100,000 SOL and record-high daily transactions on the Solana network, selling pressure dominated, resulting in heightened trading volume—up 26.6% to approximately $9.91 billion across exchanges—and a volatile session with prices ranging from 83.50 to 96.57 USDT. Solana's market capitalization is reported between $47.38 billion and $50.79 billion, with a circulating supply of 566.54 million SOL.