Solana experienced a dramatic and brutal 12-hour reset, marked by a staggering liquidation imbalance of over 8,390%. Data from CoinGlass reveals that long-position traders bore the brunt of the sell-off, with approximately $4.94 million in positions forcibly closed. This extreme liquidation event underscores the intense volatility that characterized the session.
The session began with a glimmer of bullish hope as SOL price briefly challenged a key technical threshold—the so-called “death cross” range between $124.11 and $125.42—trading as high as $125.28. This move likely encouraged traders to place bets on a continued breakout. Furthermore, Solana’s Relative Strength Index (RSI) was flashing mildly oversold signals, oscillating between 37 and 39, which can sometimes precede a rebound.
However, any bullish momentum proved short-lived. Despite a transient spike in trading volume, SOL lacked the sustained buying pressure to climb higher. Instead, a wave of market-wide risk aversion sent the price plummeting to a low of $120.78, triggering the cascade of liquidations.
Analysts point to a broader crypto market retreat as the primary driver. Significant outflows from spot Bitcoin and Ethereum ETFs, as reported in a CoinDesk market analysis, created a risk-off sentiment that rippled across the altcoin sector. Major altcoins like Cardano (ADA) and Ripple (XRP) similarly underperformed, reflecting a sector-wide downturn rather than a Solana-specific issue.
As of the latest data, Solana is trading at approximately $121.43, representing a 0.8% decline over the past 24 hours. Perhaps more tellingly, the trading volume that had initially hinted at recovery has fallen by nearly 15% to $2.74 billion, suggesting weakening buyer interest at current levels.
This event serves as a stark reminder of the leveraged trading risks inherent in crypto markets. For traders looking to understand these mechanics better, resources like Binance Academy’s guide on liquidity and liquidations explain how rapid price moves can trigger such severe market resets. Solana’s sharp downturn highlights its sensitivity not only to its own network activity but also to the dominant flows and sentiment surrounding Bitcoin and Ethereum.