Key Takeaways
Why did the Solana whale’s $26M long position ignite speculation?
It signaled strong conviction in a rebound as SOL hovered near a major accumulation zone.
How did extreme leverage impact Solana’s short-term outlook?
Despite $38M in long wipeouts, strong buyer defense near $170 supports a bullish recovery.
A whale entered the Solana [SOL] market with a $26.14 million leveraged long after depositing $10 million USDC on Hyperliquid.
This position reflects extreme confidence in a potential rebound, especially as Solana hovers near its historical accumulation zone. However, the 20x leverage amplifies risk sharply if volatility expands.
Large leveraged bets often influence short-term market structure by drawing liquidity into key resistance areas. Still, this aggressive entry at a pivotal level suggests calculated timing.
The whale may be anticipating renewed buying strength following recent dips, particularly since Solana’s technical setup supports a rebound narrative from a long-term ascending channel.
Will Solana rebound from $176?
Solana traded near $176 at press time, resting within a demand zone between $170–$180, a region that previously sparked strong bullish reversals.
This level coincided with a lower channel boundary that has historically attracted buyers during deep corrections.
Therefore, defending this support could set up a rebound toward $205, and potentially $222. However, consistent failure to maintain the zone could open the door for a decline toward $158.
The green rebound projection on the chart highlights how sentiment remains skewed toward recovery, though downside risks persist amid rising volatility.
Hence, Solana’s next move will depend on how aggressively the bulls defend the $170 floor.
Source: TradingView
Is crowd optimism a strength or a warning?
Data from Binance showed that 89.11% of SOLUSD perpetual accounts were in long positions at press time. This extreme tilt revealed strong collective optimism and confidence in near-term upside continuation.
Yet, such one-sided positioning often precedes volatility spikes, as excessive optimism leaves markets vulnerable to sudden squeezes.
Moreover, while this alignment between retail and whales could trigger quick rallies, it also raises concerns about overcrowding. When Funding Rates rise, long traders pay more to maintain positions, often leading to pullbacks.
Thus, Solana’s short-term fate hinges on whether demand sustains without triggering large liquidations.
Long liquidations expose cracks
Recent liquidation data showed $38.03 million in long positions wiped out across exchanges, with Hyperliquid alone clearing $17.24M.
In contrast, short liquidations totaled just $885K, underscoring lopsided market risk. Bybit and Gate contributed $8.96M and $4.81M respectively, showing stress concentrated among high-leverage traders.
Such liquidation surges often occur before directional reversals, flushing over-leveraged players from the market. However, sustained taker sell dominance suggests sellers still control momentum.
If Solana absorbs this pressure without breaching support, it may confirm strength beneath the surface — but further flushes remain possible if volatility persists.
Can Solana bulls reclaim control from leveraged chaos?
Despite liquidation spikes and overextended leverage, Solana’s structure still favors a rebound.
The strong defense near the $170–$180 accumulation zone confirms buyer resilience, supported by whale confidence and heavy long participation.
Unless price collapses below $170, Solana is positioned to reclaim $205 in the near term as bullish momentum gradually rebuilds.
