Solana (SOL) rebounded above $73 on Tuesday, recovering from an intraday dip near $70.60. Despite the price bounce, two key indicators signal that the move may lack strong conviction from buyers, raising doubts about the sustainability of the recovery.
Sharp drop in Bitfinex longs sparks caution
Traders on Bitfinex, a global cryptocurrency exchange known for its significant influence on leveraged positions, have rapidly reduced their long exposure in Solana. Data cited by Crypto King on X shows a steep decline in aggregate SOL long positions on the exchange, triggering concern among market observers.
Long positions may decrease for several reasons, including profit-taking, risk management, forced liquidations, or asset rotation. Although the contraction in leveraged bets does not imply that traders have access to privileged information or anticipate an immediate price downturn, the pattern often warrants caution during uncertain market moves.
Bitfinex’s public position statistics reveal a notable drawdown in SOL longs, suggesting that part of the market is de-risking as the cryptocurrency attempts to stabilize above recent support levels.
The timing and scale of the position reduction were not disclosed in detail, making it difficult to infer a precise cause. However, persistent selling or lack of aggressive buying on Bitfinex typically undermines bullish momentum, especially during periods of broad market uncertainty.
If SOL falls below the rising intraday trendline and loses the $73 threshold while Bitfinex long interest continues to fall, sellers could target $72, with a further decline potentially leading to another test of support around $70.60. Conversely, a recovery in longs and renewed buyer interest could allow Solana to challenge immediate resistance zones.
Mini dictionary: Bitfinex is a major cryptocurrency exchange that offers trading in digital assets and supports margin and derivatives trading. Its order book and open interest data are often watched for signals related to trading sentiment and large participant activity.
Spot demand lags behind price rebound
While Solana’s intraday bounce formed a series of higher lows along a short-term trendline, the evidence from the spot market is less convincing. Data posted by Ted on X highlighted a persistent lack of new spot buying during the price recovery, as shown by a flat cumulative volume delta (CVD) reading.
The 15-minute SOL/USD chart reflects a move from $70.60 up to just above $73, but spot CVD remained deeply negative near minus 314,000 and showed little upward momentum. CVD measures the net difference between aggressive market buying and selling, providing insight into the real demand behind price movements.
As Solana traded higher, the absence of a matching improvement in spot CVD indicated that the rally may be driven by short covering or derivatives activity rather than robust spot accumulation.
This divergence does not guarantee that the rebound will fail, but it underlines ongoing vulnerability in the rally’s foundation. If Solana holds its current trendline and overcomes resistance near $73.50 while spot CVD improves, the short-term bullish structure could strengthen. Until then, the move remains at risk of reversal amid subdued real buying interest.
A slip below the support zone around $73, followed by increased selling or continued weakness in spot demand, could pressure SOL toward $72 and possibly the recent low near $70.60. Market participants are closely monitoring these levels for signs of a more sustained direction.
