The post Why Solana traders remain cautious even as SOL aims for $200 appeared on BitcoinEthereumNews.com.

Solana forms a cup-and-handle pattern, while traders maintain a strong long bias on Binance. Sentiment and social metrics remain weak, signaling cautious interest despite bullish technicals. Solana [SOL] is forming a textbook cup-and-handle pattern on the weekly chart, with price now approaching the neckline resistance between $200 and $210 after bouncing from $135. At the time of writing, SOL traded at $170.20, marking a 1.57% drop in the last 24 hours.  Despite the minor decline, the handle structure remained intact, and bulls continue to test the descending trendline.  Therefore, a confirmed breakout above $200 could trigger an impulsive leg higher and validate the bullish reversal thesis. Source: TradingView Balanced activity with a slight tilt toward outflows Exchange flow data from the 16th of May showed $148.49M in inflows and $149.55M in outflows. The narrow gap between both metrics suggested that selling pressure remained low. Therefore, most investors appeared to be holding instead of exiting.  This behavior typically supports bullish setups, especially when price nears major resistance. However, the absence of strong outflows indicates weak conviction. As a result, Solana may require stronger accumulation signals to support a breakout above the psychological $200 level. Source: CoinGlass Trader positioning shows a dominant long bias Binance data showed 70.53% of traders held long positions at press time, with a Long/Short Ratio of 2.39. This clear imbalance signals high expectations for further upside. Such positioning often fuels momentum during breakouts. However, it also exposes the market to liquidation spikes if prices reverse. Despite that risk, the strong lean toward longs reflects confidence among traders. Therefore, any move above $200 may accelerate quickly as sidelined capital joins the trend or shorts get squeezed. Source: Coinglass However, Solana’s Weighted Sentiment remained negative at -0.46, suggesting a cautious mood among participants. Despite a bullish chart structure, the broader…

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Filed under: News - @ May 17, 2025 4:16 am