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Solana (SOL) Price Plunges 12%, Triggering Massive $101.38 Million in Liquidations This Week
In a dramatic turn of events, the price of Solana (SOL) has plummeted by a staggering 12% since Tuesday’s high, resulting in over $100 million in liquidations across various exchanges. The sudden downturn has sent shockwaves throughout the cryptocurrency market, with many investors reeling from the unexpected losses.
The sharp correction, which took SOL below the crucial support of $180, has been accompanied by intense selling pressure. Over $57 million in liquidations were recorded within a 24-hour period, with an astonishing 86.79% of these being long positions. This unprecedented liquidation event serves as a stark reminder of the risks involved in trading cryptocurrencies.
Despite the current bearish sentiment, some market participants continue to hold out hope for a reversal. Noted DeFi investor and Bybit partner Christiaan is one such individual, who believes that Solana’s price will eventually reach $300-$400 despite this downturn. His forecast draws parallels with Bitcoin’s recent uptrend, which has seen the asset break previous resistance levels.
The Solana ecosystem itself appears to be a mixed bag of signals, as various tokens tied to the platform have shown resilience in the face of SOL’s decline. Pudgy Penguins (PENGU), Bonk (BONK), and Fartcoin (FARTCOIN) have all experienced significant gains over the past 30 days, indicating that investor confidence remains intact.
Nonetheless, critical support levels must be closely monitored as the cryptocurrency attempts to recover. The key area between $168-$170 is particularly noteworthy, having previously served as a resistance level. Should SOL manage to bounce from this zone and re-take $184.13, it may regain some ground and potentially set its sights on the next obstacle at $205.34. Failing to hold current support could lead to a further decline down to $160.
This week’s events serve as a sobering reminder of the cryptocurrency market’s inherent volatility. As such, traders must remain vigilant and closely monitor fundamental indicators to avoid being caught off guard by sudden price movements.
Source: blockonomi.com
