On August 3, 2024, Solana (SOL), the fifth-largest cryptocurrency, saw a significant drop of over 8% in just 24 hours. This decline caused it to break through the important support level of $157.
During this time, traders and investors liquidated $16.22 million in both long and short positions. Solana might now fall to $125, with major liquidation levels set at $146 on the lower side and $162 on the upper side.
Solana (SOL) Turns Bearish: Heading Towards $125 Amid Market Decline
Solana (SOL) has turned bearish following a breakdown of its crucial support level at $157, now heading towards the $125 mark. This price drop has been influenced by the negative movements in major assets like Bitcoin (BTC) and Ethereum (ETH).
Currently trading near $150, SOL has experienced a significant decline of over 8% in the past 24 hours. During this period, SOL’s open interest (OI) has also dropped by more than 8%, according to data from CoinGlass. This decline in OI reflects increased fear and diminished interest among investors and traders.
In addition, traders and investors have liquidated more than $22.44 million in long and short positions. The majority of this liquidation, totaling $16.22 million, has come from long positions, while $6.22 million of short positions were liquidated. The bearish market sentiment continues to drive these changes.
Solana (SOL) Liquidation Levels and Bearish Outlook
Despite the significant liquidation of positions over the past 24 hours, the upcoming liquidation levels for Solana (SOL) are currently set at $146 on the lower side and $162 on the higher side. If the market sentiment remains the same and SOL falls to $146, nearly $40 million in long positions will be liquidated. On the other hand, if SOL rises to $162, around $147 million in short positions will be liquidated.
Technical analysis indicates a bearish outlook for SOL. The asset has broken below crucial support levels and the 200 Exponential Moving Average (EMA) on the 4-hour chart, which signals potential further decline. Historical data and current price trends suggest that SOL could drop to $143 and $125 in the coming days, with these levels expected to act as support.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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