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Solana (SOL) Price: 12% Drop Triggers Over $100 Million in Liquidations This Week
Solana’s price has plummeted by over 12% since reaching a high of $205.34 earlier this week, leading to massive liquidations exceeding $101 million as the market turns bearish.
The sharp decline has seen long positions absorb the brunt of the losses, accounting for a staggering 86.79% of the $57 million in liquidations over the past 24 hours.
This drastic price drop has been accompanied by technical indicators flashing warning signs. The CryptoQuant data reveals that Solana’s Spot Taker CVD has turned negative and decreasing, indicating sellers are gaining control of the market.
Moreover, the Relative Strength Index (RSI) has dropped from oversold to 56 on the daily chart, suggesting a loss of bullish momentum. The MACD indicator also shows converging lines with falling green histogram bars, further corroborating this bearish trend.
The price plummet has seen SOL close below its daily support at $184.13, solidifying the bearish outlook for Solana’s market performance.
In contrast to the bearish technical indicators, some traders remain optimistic about Solana’s long-term potential. Christiaan, a DeFi investor and Bybit partner, projects an uptrend that could propel SOL to $300 initially. This would be followed by a brief pullback before the asset surges above $400.
The prediction relies on Solana following Bitcoin’s path and kicking off a broader altcoin season. The passing of the Genius Act in the United States has boosted market sentiment, as Congress appears willing to advance two additional crypto bills, potentially ushering in a new era for the industry.
In addition to the legal developments, Solana-based meme coins have shown resiliency despite the price correction. Pudgy Penguins (PENGU) gained over 400% in the past 30 days. Other tokens like Bonk (BONK) and Fartcoin (FARTCOIN) posted gains of 158% and 38%, respectively, during this same period.
These market signals offer an insight into the mixed emotions surrounding Solana’s price drop.
Source: blockonomi.com
