Solana's Price Drops 5.05% in 24 Hours, $15.63M Liquidated

Solana (SOL) has experienced significant liquidation in the past 24 hours due to market volatility, which has impacted its price performance in the cryptocurrency space. Investors who had bet on a bullish trend for SOL were caught off guard and incurred substantial losses.

According to CoinGlass data, a total of $15.63 million was lost within the Solana ecosystem as those who had taken long positions on SOL suffered more significant losses. Within this time frame, Solana's price dropped drastically, resulting in a total of $13.27 million being wiped out.

During this period, the price of Solana declined by 5.05% on the crypto market. This decline occurred after SOL faced resistance at $172 and pulled back, despite earlier expectations of a bullish rally. The poor price performance created a liquidation imbalance of 143% for traders who had bet on Solana's futures contract. Short-position traders were not as adversely affected as long-position traders. However, following Solana's market rejection, a total of $2.36 million was wiped from these investors.

As of the latest update, the Solana price was trading at $171.84. The poor price performance has led to a significant loss of confidence among market participants. The trading volume has also dropped by 27.38% to $3.98 billion.

Despite Solana’s earlier resilience in rebounding to current levels, the ecosystem's bulls appear not to have sustained the momentum. This might be one reason the asset has not cleared the $180 resistance. Solana faces a crucial test as market analysts watch its 200-day Simple Moving Average and how SOL will perform in the coming days.

Solana bulls are a key catalyst that could push the asset upward. If they actively increase the trading volume by buying more coins, Solana might rise above $210 in the short term. Meanwhile, Chris Burniske, a crypto analyst, remains optimistic that if Solana aligns with Bitcoin, it could increase to $420.