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Solana (SOL) has witnessed severe liquidation in the last 24 hours as market volatility has affected price performance in the crypto space. Investors were stunned and lost funds after betting on a bullish performance from SOL.
Confidence wavers as Solana trading volume sinks
According to CoinGlass data, a total of $15.63 million were lost in the Solana ecosystem as those betting long on SOL suffered more losses. A total of $13.27 million was wiped out within the time frame as Solana dropped drastically.
During this period, the price of Solana has suffered a 5.05% decline on the crypto market. This comes after SOL faced resistance at $172 and pulled back despite anticipating a bullish rally.
The poor price performance created a liquidation imbalance of 143% for traders betting on Solana's futures contract. Short-position traders were not as adversely affected as long-position traders.
However, following Solana's market rejection, a total of $2.36 million was wiped from these investors.
As of press time, the Solana price was changing hands at $171.84. The poor price performance has led to a significant loss of market participants' confidence. The trading volume has also dropped by 27.38% to $3.98 billion.
Analyst remains Bullish on $420
Despite Solana’s earlier resilience in rebounding to current levels, the ecosystem's bulls appear not to have sustained the momentum. This might be one reason the asset has not cleared the $180 resistance.
Solana faces a crucial test as market analysts watch its 200-day Simple Moving Average and how SOL will perform in the coming days.
Solana bulls are a key catalyst that could push assets upward. If they actively increase the trading volume by buying more coins, Solana might rise above $210 in the short term.
Meanwhile, Chris Burniske, a crypto analyst, remains optimistic that if Solana aligns with Bitcoin, it could increase to $420.
Vladislav Sopov
Dan Burgin