Traders are shorting Solana [SOL] like it’s gone out of fashion — yet the network still tops the DEX volume charts. With the long-to-short ratio dropping to a 30-day low of 0.86, this is either a classic case of herd capitulation or a precursor to something worse. Sentiment turns bearish despite strong on-chain performance Solana’s long-to-short ratio has fallen sharply to 0.8653 as of May 13, the lowest level in the past 30 days. This shows that short positions now significantly outnumber long positions — 53.61% short vs. 46.39% long — a rare sentiment shift for an asset that also leads DEX volume. Over the past month, the ratio has hovered around equilibrium, only briefly dipping below 0.95. However, the recent plunge shows that the market is clearly tilting toward bearish expectations. It’s unclear if this reflects true conviction or passive hedging, but historically such imbalances have often preceded volatility spikes — either due to a short squeeze or a trend-confirming breakdown. Solana Leads, But Will Traders Buy In? Despite the surge in bearish positioning, Solana continues to dominate DEX activity by a wide margin. Over the past seven days, Solana’s DEX volume has reached $22.4 billion, more than $6 billion higher than Ethereum [ETH] and well ahead of BSC, Base, and Arbitrum. The network’s high yields and low fees continue to attract traders, memecoins, and liquidity. The disconnect between fundamental usage and derivative bets suggests there may be mispricing — or at least a discrepancy between short-term trader psychology and long-term network traction. If fundamentals still matter (and they certainly do), the power of the crowd may be fading at the wrong time. Solana Price Outlook At press time, SOL stock is trading around $174.53, consolidating after a sharp rally earlier this month. The RSI is at 71.83, indicating overbought conditions that could limit short-term upside. Meanwhile, the MACD remains in bullish territory with a clear divergence above the signal line, suggesting momentum has not completely faded. The price action shows an indecisive candlestick pattern after the breakout – suggesting that continued gains are possible, as well as a short-term pullback. If SOL breaks above $176, it could target the $185-190 range. However, failure to hold the $170 support area could trigger a retracement towards $160.