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The new month is opening up to a bullish crypto setup with altcoins like Solana (SOL) in the spotlight. Solana is undergoing an intense rebound after a massive price drawdown that saw it drop as low as $125.74 over the past week. Along with this comes a 24-hour daily liquidation of $26.72 million, a massive figure that shows how much leverage traders are exposed to.
Solana price and liquidations
At the time of writing, Solana's price has rebounded by 10.2% in the past 24 hours to $142.55. The impact on short sellers was resounding, with the coin jumping as high as $150 in its recovery push. CoinGlass data shows that short-position SOL traders suffered the most liquidations, with a total of $18.35 million liquidated.
Godfrey BenjaminLong traders recorded a drawdown of $8.46 million to create more than an 80% liquidation imbalance. While Solana outshined other top altcoins like XRP and Dogecoin (DOGE) with this liquidation, the combined crypto market saw a milder sell-off of around $301 million.
Compared to massive liquidations from the earlier week, the crypto market has seen a cool-off in price action. With Bitcoin back above $85,000, pundits believe the worst might be over for the market.
Solana ETF driving interest
One of the major reasons behind the Solana sell-off in February was the unlock of the FTX Estate’s stash. This massive liquidity in the market triggered a sell-off scare that fueled the sell-off.
Gamza KhanzadaevHowever, with this headwind now clearing, investors are now focusing on the potential Solana ETF approval's potential impact. While meme coins have uplifted SOL per their high retail attraction, the ETF will boost institutional participation in the Solana ETF market.
Asset managers are also driving the push for options on crypto ETFs, which can further bolster the liquidity in the market. For Solana, these potential future offerings form a tailwind that might drive overall price growth.
Dan Burgin
Vladislav Sopov