At **$176** , a large amount of SOL positions are being sold or converted into short positions, and multiple technical indicators are also issuing **bearish signals**, indicating that Solana is currently in a weak trend.
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## Why is SOL Falling?
### 1. Macro Environment: Crypto Market is Entering 'Risk-Off Mode'
The entire crypto market is in a **risk-off** state:
Investors are starting to reduce exposure to high-risk assets due to uncertainty regarding interest rate prospects.
This creates pressure on most altcoins, and **SOL is no exception**.
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### 2. Negative Factors for Solana Itself
For SOL, this round of decline is further amplified by the following factors:
* **Mass profit-taking after a previous surge**
The previous gains were considerable, and now many early bulls are choosing to lock in profits at high levels, creating selling pressure.
* **Leverage longs being liquidated in succession, accelerating the decline**
High-leverage long positions are being forcibly liquidated during price pullbacks, amplifying the downward momentum.
* **Market continues to worry about FTX's remaining SOL selling pressure (so-called Overhang risk)**
FTX still holds a large amount of SOL, and the market is concerned about potential future sell-offs, affecting sentiment and valuations.
* **Technical breakdown of key support levels triggering more selling and shorting**
Once critical support is breached, it often triggers more stop-losses, counter shorting, and systematic selling signals.
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## Fundamentals are Not 'Collapsing', but Short-Term is Clearly Bearish Dominated
It should be emphasized that:
* **Currently, there is no new large-scale outage event on the Solana network**
* **Long-term fundamentals and institutional interest are still present**, including attention surrounding ETFs
* However, short-term sentiment is **clearly bearish**, and price trends have well reflected this
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## Trading Advice: Be Extra Cautious in This Range
When operating on SOL in the current area, traders should:
* **Respect the trend and do not catch falling knives**
* **Tighten risk management**, control positions and leverage
* **Do not subjectively guess the bottom without clear reversal signals**
Wait for a true appearance of:
Clear stop-loss structure
Key levels re-establishing and stabilizing
Bearish momentum clearly weakening
Then consider short to medium-term bullish opportunities, which would be more professional and safer than 'blindly bottom-fishing'.
