SOL/USDT Analysis – Breakdown or Bear Trap in the Making?

The SOLUSDT price has tumbled more than 7.5% in the last 24 hours, breaking below its ascending wedge support on the daily chart. This technical breakdown has shifted market sentiment, with bears now pressing for deeper losses.

The Bull-Bear Power Index has flipped negative for three straight sessions, its longest bearish streak since June. This confirms growing sell-side dominance as SOLUSDT trades around $169, clinging to key support at $166. A clean break below this level could open the way to $156 or even $143, extending the downtrend.

While SOLUSDT price action dominates the picture, network demand has also weakened, with active addresses falling sharply since July’s highs. This dip in participation aligns with the breakdown, hinting that buyers lack the strength to defend key levels. Meanwhile, liquidation data shows that shorts significantly outweigh longs, adding pressure as bearish positions accumulate.

For this to become a classic bear trap, bulls need a swift rebound above $175–$180, forcing shorts to unwind and flipping momentum back positive. Until that happens, the technical setup and order flow favor bears, keeping downside risk firmly in play.