A Drop Linked to Liquidations in the Derivatives Market
The decline of Solana is largely attributed to a wave of liquidations affecting the crypto derivatives products. A total of approximately $643 million worth of long and short positions were closed in the last 25 hours. The majority of these liquidations came from leveraged traders who misjudged the market’s direction.
When these positions are automatically liquidated, it creates an instant selling pressure, fueling the volatility of tokens like Solana. This technical phenomenon is exacerbated by a partial disengagement of investors in staking, reducing their risk exposure.
Despite this short-term correction, Solana’s long-term outlook remains strong. Several positive factors are worth monitoring:
- The recent launch of a Solana ETF in the United States attracted nearly $30 million in new capital, indicating growing interest from institutional investors.
- Some analysts believe that a future spot ETF on Solana could trigger a new bullish rally, making it easier for institutions to access the asset.
- Lastly, the anticipation of an “Altcoin Season” could benefit Solana, being a technical leader in Web3 and dApps.
Can Solana Rebound to $190-200 in the Next Few Days?
The 6% drop in the price of Solana is not a cause for concern but rather a reflection of the characteristic volatility in crypto market cycles. While investors should remain cautious in the short term, Solana’s fundamentals remain strong, hinting at a potential rebound in the medium to long term.
Analyst Atalantis highlights numerous profit-taking actions that were “filled” between $171 and $173 during this Sunday’s uptrend. This confirms a period of “derisking,” as uncertainty about the direction of Bitcoin still looms. “Many orders were filled here on SOL and other alts,” he writes.
Indeed, the Point of Control (liquidity zone where many trades occurred) is at $172 in 2H, with strong liquidity areas between $165 and $179. This zone could pose a challenge for SOL, with many investors taking profits there.
The MRC indicates a potential target between $185 and $210 for SOL if BTC reaches and surpasses $108,000 to $109,000. This would represent a potential increase of over 10% for SOL.
If you are looking to buy SOL before this significant rise, here is a guide on how to do it on Bitget:
- Create a Bitget account
Sign up on Bitget with your email or phone. Then submit an ID for KYC verification, necessary for trading. - Add funds
Deposit cryptocurrencies (USDT, BTC) or fiat via credit card (Visa, Mastercard) or bank transfer in “Deposit”. - Access the market
Go to “Spot Market,” search for “SOL,” and select the SOL/USDT pair. - Make the purchase
Choose a market order (instant purchase) or limit order (set price), indicate the quantity, and confirm.
