The crypto market resumed a bullish start during the early hours of Monday as leading cryptocurrencies like BTC, XRP, and SOL were seen recording decent daily gains. However, sentiments flipped in the latter hours, and bullish traders on SOL were wiped out massively, according to data from Coinglass.
The data shows that Solana has witnessed an aggressive side liquidation in the last hour as the market zooms off into a notable downtrend, pushing the price of the asset far below the $200 mark it last reached on Monday.
Solana saw its 1-hour liquidation trend put traders in a total loss of $3.89 million, with those betting long on SOL suffering significant losses against the bearish traders.
Out of the total losses recorded during the period, long positions on SOL accounted for a massive $3.85 million in losses compared to just $36,660 suffered by short traders. The one-sided liquidation trend has resulted in a massive 10,401.3% liquidation imbalance.
While the early positive trend reignited hopes among investors, the sudden flip in price trends experienced during the late hours of July 28 caught Solana traders off guard, with the liquidation event during the period turning in favor of traders who placed bets against the token’s upsurge.
This unexpected liquidation trend has dashed hopes that Solana might be moving to reclaim its one-week high of $200, as market uncertainties continue to linger amid the mixed price actions projected by the broad market.
Solana rockets 71.76% but not a good sign
The ongoing market plunge has seen Solana retreat back to its previous levels after attempting to break through the $200 resistance level multiple times. The past days have seen the token plunge deeper, trading at $185.11 as of press time, according to data from CoinMarketCap.
The reason behind the recurring downturn is attributable to selling pressures from investors who have held positions on Solana for extended periods, evident in the massive 71.76% surge in SOL’s trading volume.
While increases in trading volumes can be considered bullish pointers to an asset’s potential upsurge, the case is different this time, as the significant surge in the metric is seen coinciding with a decrease in Solana’s market capitalization and value, which indicates market sell-offs amid weakening confidence among investors.
Vladislav Sopov
U.Today Editorial Team