Solana Shows Bullish Breakout Signals Amid Long-Term Investor Exodus; When Will It Reclaim the $91 Mark?

▲ Solana (SOL)

Solana (SOL) is seeing peak market volatility as warning signs of a powerful bull trap emerge amid conflicting data between technical breakout signals and the exit of long-term investors.

According to crypto media outlet BeInCrypto on Feb. 21, Solana recently showed a 6.1% increase in open interest alongside attempted price gains, while funding rates turned positive, indicating that traders are increasingly betting on further upside. However, contrary to this apparent bullish momentum, on-chain data from the Hodler Net Position Change metric revealed a 50% plunge in long-term holder balances, signaling signs of large-scale exits. Breakout attempts occurring while long-term investors—who effectively hold market control—are exiting carry the typical risk of a bull trap, where new buyers are lured in before a sharp decline follows.

From a technical analysis perspective, Solana stands at a precarious crossroads. Rising open interest and expanding leveraged long positions could trigger a chain reaction of forced liquidations if prices fail to rise as expected and instead reverse downward, amplifying declines. In particular, if the recent rally attempt fails to break above $91 and faces renewed selling pressure, the market structure could quickly shift to a bearish trend. Experts note that unless Solana firmly secures the $91 level, the current upward movement is likely to remain a temporary rebound.

On Feb. 16, the failure to break through the $88 resistance level was confirmed as a bull trap, leading the short-term market structure to turn bearish once already. Late buyers who entered near $88 found themselves trapped at the top as prices sharply reversed, creating a potential selling wall in the current market. The key support level now determining Solana’s direction lies at $78, and a breakdown below that level is expected to significantly dampen investor sentiment.

If Solana falls below $67.24, all recently formed bullish patterns would be completely invalidated. The $67.24 zone is a high-risk area where leveraged long liquidations are concentrated, meaning a failed hold could accelerate price declines. Conversely, if institutional capital or strong buying pressure absorbs the selling from long-term holders and the price successfully stabilizes above $91, there remains a slim possibility of dispelling bull trap concerns and entering a new upward phase.

Market participants are closely monitoring Solana’s open interest trends against actual price breakouts in real time, focusing on risk management. Amid ominous signals of heavy long-term holder selling near the highs, the key question is whether retail investors will serve as an exit route for larger players or demonstrate resilience by pushing through resistance levels. Investors are cautiously watching the intense battle unfolding within the narrow range between $78 and $91.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on this information. The content should be interpreted for informational purposes only.