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Solana Dip Leads to $250M Lost in Liquidations

Solana appears to be holding above a critical support level after taking a 38% nosedive in the past eight days. 

Shutterstock cover by Andrey Bocharov

Key Takeaways

  • Solana’s price action has generated more than $250 million in liquidations since the peak, with $27 million lost over the last 24 hours. 
  • Now, SOL is sitting above a crucial support level that will determine where it heads next.
  • If buy orders pile up, it may retest previous all-time highs, but a spike in downward pressure could see it fall to $96. 

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Many investors have struggled to correctly time Solana’s price action over the last week, incurring $250 million in losses. 

Solana Liquidates Bulls and Bears

A Solana dip has led to a massive $250 million worth of liquidations.

The high-throughput blockchain’s SOL token has enjoyed an impressive 877% bull run since Jul. 20. The so-called “Ethereum killer” has risen from a low of $22.10 to a new all-time high of $216, becoming the seventh-largest cryptocurrency by market cap.

Following the $216 peak of Sep. 9, traders have been having a tough time anticipating SOL’s price action. Since the peak, more than $250 million worth of long and short positions have been liquidated across the board, with over $27 million of the losses incurred in the past 24 hours. 

Solana liquidations
Source: Bybt

One of the main reasons for such an erratic price action was the “intermittent instability” issue that the Solana network experienced on Sep. 14. A denial of service attack took the blockchain down for roughly 18 hours, generating panic among token holders. The sell-off pushed prices down by 17% within a few hours to a low of $142.60. 

Holding on to Critical Support

Although Solana’s price has been fluctuating since the outage, it wasn’t until today that it reached a vital support level. The 38.2% Fibonacci retracement level and the middle Bollinger band on the daily chart seem to be acting as a strong foothold for SOL. 

If this demand wall can hold, SOL could rebound towards the 23.6% Fibonacci retracement level at $170 or even the all-time high at $216. 

Solana US dollar price chart
Source: TradingView

Still, investors need to pay close attention to the $142 support level over the next few days. Slicing through this interest area might lead to a steeper correction toward the 50-day moving average and the 61.8% Fibonacci retracement level at $96. 

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