Solana News Today: Solana (SOL) Falls 9.5% as $30M in Long Liquidations Trigger Sharp Correction

Solana (SOL) experienced a 9.5% price decline on July 23, 2025, amid $30 million in long-position liquidations triggered by a long squeeze scenario. The drop, from $205 to $186, marked the cryptocurrency’s most significant daily correction since early March. Elevated open interest in SOL futures reached an all-time high of $12 billion, compounding pressure on leveraged traders as funding rates surged to their highest levels in the past quarter [1]. A bearish divergence in futures cumulative volume delta (CVD) further signaled profit-taking by short-sellers prior to the correction, accelerating the downward momentum [1]. Despite the sharp pullback, Solana’s price remains 36% below its all-time high, suggesting the market is still consolidating gains rather than entering a bearish phase.

Technical analysis indicates the $180 level serves as a critical support zone, validated by a bullish break of structure (BOS) earlier in the week. This level represents the first major upward trend shift on the daily timeframe since November 2024. COINOTAG analysts highlighted that maintaining support above $180 could reinforce the bullish momentum, particularly with the 50-day exponential moving average (EMA) recently crossing above the 200-day EMA—a golden cross historically associated with bullish trends. The last golden cross in late 2023 preceded a 730% price surge over several months, offering a potential precedent for future performance [1].

For traders, the $180 support level is a key focus. A sustained hold could attract renewed buying interest and extend the upward trajectory. Conversely, a breakdown below this threshold may expose Solana to a deeper retracement toward the $168–$157 range. This zone aligns with a daily fair value gap and Fibonacci retracement levels (0.5 to 0.618), commonly regarded as high-probability areas for price consolidation or reversal [1]. Elevated open interest and funding rates remain risks, underscoring the need for cautious positioning and risk management.

The broader market context suggests Solana’s correction is a natural adjustment following a strong rally. While the $180 support and golden cross signal resilience, traders should balance optimism with prudence, given the overcrowded long trade environment. The interplay between technical indicators and market sentiment will likely determine whether the bullish trend persists or gives way to further volatility.

Source: [1] [title1Solana (SOL) Dips Nearly 10% Amid Long Liquidations, Bullish Trend May Persist With Support at $180 July 23, 2025] [url1https://en.coinotag.com/solana-sol-dips-nearly-10-amid-long-liquidations-bullish-trend-may-persist-with-support-at-180/]