$SOL # How market sentiment is affecting SOL's volatility

## Rapid shift between risk and caution

The sentiment around SOL has shifted from **extremely optimistic** to **cautious** in a matter of hours. After surpassing 200 USDT and generating euphoria in communities like Valuescan and AoYing WEB3, the rejection from that zone triggered rapid selling, amplified by the poor overall market timing following events like the major liquidation of "Black Friday".

This emotional turn —from FOMO (fear of missing out) to profit-taking— has directly increased volatility, with sharp movements in short intervals.

## Influence of external factors

Although SOL shows fundamental strength with institutional purchases (like that of Solmate), the general sentiment in the crypto market remains under pressure. News such as a bearish bet by a BTC whale for over 400 million dollars and macroeconomic tensions (like US-China trade tariffs) are creating a "risk-off" environment, dragging down assets like SOL even when its internal case is positive.

As a result, every attempt at recovery is met with anticipatory selling, which amplifies price swings.