Solana News Today: Binance's SOL Offload Triggers $46M Long Liquidations, Price Drops 15%

Solana (SOL) is currently under pressure as a large-scale sell-off by Binance has triggered widespread long liquidations. The price of Solana has dropped by 15% over the past week, with Binance offloading 110,000 tokens—likely to Wintermute—marking a strategic move rather than a routine transaction. This offload has amplified deleveraging in a market already skewed toward long positions, with retail Open Interest near $180 showing 91% net long exposure. As a result, $46 million in long positions were liquidated on August 1, the largest such event since the first quarter of this year [1].

The market reaction to Binance’s offload has been sharp, with leverage in Solana’s futures market significantly reduced. Despite the drop in leverage, perpetual funding rates remain heavily in favor of long positions, with 78% of perpetual exposure on Binance skewed to longs over a 5-minute timeframe. This persistent long bias suggests that Binance’s move was intended to flush out excessive leverage, drive the price into thin liquidity, and set the stage for a market reset ahead of potential accumulation phases [1].

Currently, Solana’s price is testing key on-chain support levels around $160, a critical area above a realized price cluster between $140 and $150, where significant historical accumulation occurred. This zone could serve as a high-probability reaccumulation point if the downward trend continues. With $17.9 million already liquidated in long positions and Open Interest remaining compressed, the market is exposed to further declines unless strong spot buying emerges or Open Interest resets [1].

The broader market positioning for Solana remains vulnerable due to its long-heavy perpetual exposure and rising realized losses. Unless risk sentiment turns bullish, a retest of the $140–$150 support cluster appears increasingly likely. Market participants, particularly large holders, may use this period to strategically reaccumulate SOL at lower price points. The sell-off has effectively flushed out weak hands and excessive leverage, potentially clearing the way for a more sustainable upward trend once stability returns [1].

Analysts suggest that the current phase represents a tactical reset for the Solana market. While the immediate outlook remains bearish, the potential for accumulation at key support levels could provide a foundation for future recovery. Investors are advised to closely monitor Open Interest, funding rates, and on-chain metrics to anticipate the next directional move in this volatile market [1].

Binance's offload is not just a liquidity event but a deliberate attempt to reshape the market structure. By offloading a large number of tokens at a time when leverage is at an extreme, the exchange appears to be preparing for a more balanced market environment. This approach aligns with broader strategies seen in the crypto space, where major players sometimes act as liquidity providers or market makers to influence price action in a controlled manner [1].

In conclusion, the Solana market is undergoing a critical phase driven by Binance’s strategic offload and subsequent deleveraging. While the price continues to test key support levels, the potential for a reaccumulation phase remains intact. Investors should remain cautious but watchful, as the market may be positioning itself for a more stable and sustainable trajectory following this period of forced adjustment.

Source: [1] Solana (SOL) Faces Potential Further Decline Amid Binance Sell-Off and Long Liquidations (https://en.coinotag.com/solana-sol-faces-potential-further-decline-amid-binance-sell-off-and-long-liquidations/)