67% of Funds Withdrawn from SOL: Is This a Warning Sign?

Recently, SOL has become the focal point of intense debates in the market. A major investor just opened a short position of $28 million with 20x leverage, causing waves of instability within the trading community. But the real question isn’t about that trade itself, rather about the significance behind the 67%—the percentage of withdrawals from large transactions over the past 24 hours. What does this simple yet telling number really indicate?

Major Investor Opens Massive Short Position: What’s Happening?

On paper, SOL’s story seems perfect. Institutional capital continues to flow in, totaling $2.4 million, the Real World Assets (RWA) industry is booming with a 58.7% increase, surpassing $1.1 billion. Even the European Central Bank is considering using SOL as the technological backbone for digital euro. All these signs suggest SOL is following Ethereum’s footsteps—from a small project to a global ecosystem.

However, when a large investor opens a $28 million short position with 20x leverage, it signals that at least one major player is betting against the current trend. This prompts many traders to reconsider their assumptions.

Institutional Flows vs. Technical Reality

Data from the past 24 hours reveals a clear contradiction. While institutions continue to inject capital, 67% of the total $23 million withdrawn from the market comes from large transactions. This is significant: smart money is flowing out, while retail investors keep buying in. This is a warning sign of an impending downturn.

Market laws show that when institutional capital enters, it doesn’t necessarily mean long-term confidence. They are in for profit. When better opportunities arise or market sentiment shifts, they withdraw faster than anyone. That’s the essence of greed in financial markets.

Technical Warning: Why Hasn’t SOL Hit Bottom Yet?

Current chart analysis shows concerning signals. All 7-period EMA cycles are in a downtrend, MACD is repeatedly crossing into death cross, and the price is approaching the lower Bollinger Band. With SOL currently at $86.25, down 5.22% in 24 hours, technical traders know that the $80 level might not be the true bottom.

The first support level is at $79.5—an important zone if the price is to recover. But a stronger support lies at $76.8. If SOL drops below $79 without regaining support, the likelihood of falling further to $76.8 is quite high.

Trading Strategy and Risk Management

For those monitoring these developments, there are some opportunities but extreme caution is necessary:

Optimistic scenario: If SOL stabilizes near $79.5 with increased volume, consider a small long position targeting resistance levels at $82.5 and $85.5.

Risk management: Set a hard stop-loss below $79. If the price continues to weaken past this point, exit immediately. No exceptions. The next support level to watch is $76.8.

SOL still holds long-term value, but given the current situation, short-term traders must remember: 67% isn’t just a statistic; it’s a market warning that smart money is shifting away. A safer strategy is to wait for clearer signals before jumping in.