Aggressive deleveraging across high-beta alts will drag SOL below $70 in May. Current SOL funding rates on perp markets are cooling from overheated positive, and a flip to negative basis on Binance perpetuals indicates growing short pressure. Open Interest on SOL has already shed 18% in the last 72 hours, signaling significant smart money exit. The critical $120 support has been tested multiple times without conviction, setting up a definitive breach. Once $120 breaks, the next major structural support is the $100 psychological level, coinciding with the 200-day SMA. A failure to hold $100 amidst continued BTC weakness to $50K will trigger cascading liquidations down to the $70 re-accumulation zone, a 65% retracement from its March highs. Solana's MVRV Z-score remains in an overvalued region, with high transaction counts masking declining TVL growth quality. Sentiment: FUD on CT is high. 85% YES — invalid if BTC decisively reclaims $65k before May 15th.
Aggressive deleveraging across high-beta alts will drag SOL below $70 in May. Current SOL funding rates on perp markets are cooling from overheated positive, and a flip to negative basis on Binance perpetuals indicates growing short pressure. Open Interest on SOL has already shed 18% in the last 72 hours, signaling significant smart money exit. The critical $120 support has been tested multiple times without conviction, setting up a definitive breach. Once $120 breaks, the next major structural support is the $100 psychological level, coinciding with the 200-day SMA. A failure to hold $100 amidst continued BTC weakness to $50K will trigger cascading liquidations down to the $70 re-accumulation zone, a 65% retracement from its March highs. Solana's MVRV Z-score remains in an overvalued region, with high transaction counts masking declining TVL growth quality. Sentiment: FUD on CT is high. 85% YES — invalid if BTC decisively reclaims $65k before May 15th.
