By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
KriptotekaKriptoteka
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Reading: Are Solana Traders Facing $200M Liquidation Risk Soon?
Share
Notification Show More
Font ResizerAa
Font ResizerAa
KriptotekaKriptoteka
  • Home
  • News
  • Market
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Kriptoteka > Market > Altcoins > Are Solana Traders Facing $200M Liquidation Risk Soon?
Altcoins

Are Solana Traders Facing $200M Liquidation Risk Soon?

marcel.mihalic@gmail.com
Last updated: October 24, 2024 4:34 pm
By marcel.mihalic@gmail.com 4 Min Read
Share
SHARE

Solana’s price has recently surpassed the $161 level for the first time in over two months, indicating strong bullish momentum. The surge in the altcoin’s price has caught the eye of traders; however, despite the optimism, there are increasing fears of a potential bearish reversal.

Significant sell pressure is mounting, which could jeopardize the bullish trend that has pushed SOL beyond essential resistance levels.

Risks for Solana Traders

Currently, the liquidation map illustrates that Solana traders are predominantly bullish, with a greater number of long contracts compared to shorts. While this reflects a strong belief in Solana’s upward path, it also carries substantial risk should the market change direction. If Solana’s price corrects and falls to the $161 support level, over $200 million in long contracts could face liquidation. This volume of liquidation would affect market sentiment and might lead to increased selling, deepening the price drop.

The accumulation of long contracts indicates that traders are anticipating the continuation of the bullish trend. However, this creates a precarious situation. A sudden price decline could initiate a series of liquidations, intensifying the downward pressure. Should the sell-off accelerate, traders may hurriedly close their positions, putting further strain on Solana’s price.

Read more: 7 Best Platforms To Buy Solana (SOL) in 2024

Solana Liquidation Map.
Solana Liquidation Map. Source: Coinglass

From a technical standpoint, Solana’s macro momentum holds vital significance. The Relative Strength Index (RSI) is approaching the overbought territory, often indicating a possible reversal. Historically, significant drawdowns have followed similar circumstances when Solana reached these RSI levels. If the RSI enters the overbought zone, it could instigate a pullback, potentially driving SOL to the $161 support level.

Moreover, the broader crypto market shows signs of caution, with other prominent assets experiencing declines. Solana’s momentum may face challenges if the altcoin market turns bearish. Inability to sustain current price levels could lead to a more extensive downturn, placing Solana at risk of testing crucial support areas.

Solana RSI.
Solana RSI. Source: TradingView

SOL Price Outlook: Facing Challenges

Solana currently encounters resistance at $175, a level it has not seen in nearly three months. After breaking the $161 barrier for the first time since August, the altcoin demonstrates signs of strength. Nonetheless, the market’s susceptibility to a pullback remains a concern. A decline could revert Solana to its essential $161 support level.

If Solana fails to maintain the $161 support, the next pivotal level to monitor is $155. A drop below $155 would further diminish the bullish outlook, indicating deeper downside potential for the altcoin. Traders should keep a close watch on these support levels, as a breach could lead to additional losses.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

Solana Price Analysis.
Solana Price Analysis. Source: TradingView

Conversely, if Solana succeeds in overcoming the resistance at $175, the price may rally towards $186. Surpassing this level would invalidate the bearish outlook and restore confidence in the altcoin’s bullish trajectory.

Disclaimer

In accordance with Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be viewed as financial or investment advice. BeInCrypto is dedicated to providing accurate and unbiased reporting; however, market conditions can change unexpectedly. Always perform your own research and consult a professional before making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

You Might Also Like

Bitcoin Dominance Hits 59.2%: Are Altcoins Facing Decline?

Axelar Crypto Surges 43% in October: Cool-Off Ahead?

Bitcoin Expected to Experience One Last Shakeout Soon

Bitcoin Struggles as Tether Faces Probe and Middle East Tensions

Bitcoin Dip Causes Altcoins to Decline Further, Market Cap Drops

Share This Article
Facebook Twitter Email Print
Previous Article Polymarket Faces Democratic Backlash Over Election Betting Odds
Next Article Bitcoin Set for Short-Term Rally with Bullish Coinbase Signals
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow
- Advertisement -
Ad image

Latest News

4 Cryptos to Challenge Solana: Potential Growth for Investors
Defi
Bitcoin ETF Inflows Exceed $3B, Demand Reaches 6-Month Peak
ETFs
Japan’s Push for Bitcoin and Ethereum ETFs Gains Momentum
Institutions
Ripple Appeals Court Ruling on XRP’s Institutional Sales
Meme
//

We influence millions of users and is the number one Crypto and Web3 news network on the planet

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?