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Solana (SOL) Faces $120 Million in Liquidations, Price Drops by 10% Almost Immediately

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Wed, 22/02/2023 - 17:00
Solana (SOL) Faces $120 Million in Liquidations, Price Drops by 10% Almost Immediately
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The correction on cryptocurrency markets is here as the majority of digital assets are losing some of their previous gains or entering consolidations. Such a tendency was expected, but some assets need proper oversight.

Solana's liquidations strike

Solana (SOL) has faced a major setback in the last two days. According to reports, the cryptocurrency has seen over $120 million in liquidations, causing its value to drop by around 10%.

Solana Liquidations

Liquidations were caused by a sudden shift in the market, which saw bears provide significant pressure on Solana's price. As a result, the majority of long orders were removed from the market, demonstrating the inability of bulls to keep up with current market conditions.

This news is particularly disappointing for Solana, which had been making significant gains on the market over the past few weeks. The cryptocurrency had seen its value rise by around 30% in the last month alone, making it one of the best performing cryptocurrencies on the market.

Is Polygon in trouble?

Polygon (MATIC) has recently experienced a significant drop in its value, losing almost 10% in the last 24 hours. The decline followed an announcement from the company stating that it would be cutting 20% of its workforce, which was perceived as a bearish signal by many investors and traders.

Related

The reason why a workforce cut is seen as bearish on the markets is that it often indicates a lack of confidence in a company's future prospects. It suggests that the company is struggling financially or is not performing as well as expected, which can lead to a decrease in demand for its products or services. As a result, investors may start to lose faith in the company's ability to grow and generate profits, leading to a sell-off of its shares or tokens.

However, the true reason behind MATIC's recent performance may be tied to the overall correction on the market and the outflow of funds from projects similar to MATIC, including Ethereum and Cardano. As the cryptocurrency market experiences a period of correction, many investors and traders are moving their funds into safer assets or taking profits from riskier investments.

Furthermore, the outflow of funds from Ethereum and Cardano, which are two of the largest players in the decentralized finance (DeFi) space, may also be impacting MATIC's performance.

Fantom faces problems

Fantom, the decentralized platform for smart contracts, has lost a key support technical level at around its 21-day moving average. The 21-day moving average is often considered a guideline for assets that are moving in uptrends, and its breach could indicate a potential change in the trend for Fantom.

The price of Fantom has been under selling pressure, and the recent drop in price is a sign of the challenges that the project is facing. The project has been heavily accumulated by whales recently, which could have contributed to the selling pressure on the market.

In the last 24 hours, Fantom has lost around 7% of its value. While this may not seem like a significant drop, it is a worrying sign for the project, which has been performing well on the market until now.

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