- SOL’s price dropped by 5% in the last 24 hours.
- Technical indicators suggested a rise in selling pressure.
Solana [SOL], for the past month, has enjoyed a comfortable upswing. But the latest analysis proposed that there are problems ahead.
Therefore, AMBCrypto planned to investigate to find out what these obstacles are and how well SOL is prepared to tackle them.
Solana’s liquidation hurdles
CoinMarketCap’s data revealed that Solana bulls pushed the token’s price up by more than 34% in the last 30 days.
This price pump allowed the token to earn a substantial amount of market cap, pushing the number to $106 billion.
In the meantime, Alphractal, a data analytics platform, recently posted a tweet, revealing quite a few interesting updates on Solana.
As per the tweet, in the short term, bears are likely to be liquidated around $247 to $252. However, over the past month, a significant number of long positions remain unliquidated.
The tweet mentioned,
“Levels like $210 and below $200 hold the highest concentration of liquidations across exchanges. There’s also a final pool of short positions near $267.”
This doesn’t make SOL a viable option for people who are planning to go long on the aforementioned positions, as a rise in liquidation often results in price correction.
What is causing SOL to drop?
Meanwhile, Solana witnessed an over 5% price correction in the last 24 hours. At the time of writing, the token was trading at $224.94. A possible reason behind this price decline could be a rise in selling pressure.
Analysis revealed that SOL’s CEX inflows surged in the last few days when SOL’s price was bullish. This can be considered a profit-taking move, which resulted in a correction.
Source: ARKHAM
However, as pointed out by Alphractal’s tweet, investors might have a good opportunity to reenter the market when SOL’s price drops to $210.
Since a lot will get liquidation at that level amidst a bear rally, SOL might make a comeback from there.
Therefore, AMBCrypto checked other datasets to find out the possibility of SOL dropping to $210 or can it gain bullish momentum before that.
Coinglass’ data revealed that Solana’s long/short ratio declined. This clearly meant that there were more short positions in the market — a sign of rising bearish sentiment.
Read Solana’s [SOL] Price Prediction 2024–2025
In fact, a look at SOL’s daily chart suggested that chances of it dropping to $210 were high. The token recently plummeted under its $237 support.
The Relative Strength Index (RSI) also registered a down tick, indicating selling pressure, which further supported the aforementioned possibility of SOL pulling back to $210.
Source: TradingView
