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Solana (SOL) fell to a two-month low on Monday, reflecting a general decline in the cryptocurrency market led by Bitcoin. Although SOL has recovered slightly with a 2% increase, the impact is still huge with over 21 million USD forced into liquidation in the last 24 hours.
With bearish pressure intensifying, long-term long positions in the SOL futures market are still facing risks.
Solana Merchant Recorded Losses
During intraday trading on Monday, SOL price fell to a 68-day low, at $168.88, as Bitcoin fell below the critical $90K support level. Although SOL has recovered slightly, long-term long positions in its derivatives market remain under significant liquidation pressure.
According to Coinglass, in the past 24 hours, total liquidations on the Solana market have reached 25.48 million USD, with long position liquidations accounting for 21.38 million USD and short position liquidations totaling 4.10 million USD. USD.
Liquidation occurs when the price of an asset moves against a trader’s position. In those situations, the trader’s position is closed due to insufficient resources to maintain it.
With SOL, long-term traders are forced to sell assets at lower prices to minimize losses when prices fall. This usually happens when the asset price falls through a certain threshold, forcing traders who were betting on an increase in price to exit the market.
For this reason, SOL derivatives traders have started to close their positions, which is reflected in the decrease in open interest in the coin. Over the past 24 hours, open interest has decreased by 3.47%.
Open interest tracks the total number of outstanding futures and options contracts. A decrease in the open interest of an asset shows that traders are closing their positions, which can indicate a decrease in market activity and a potential decrease in the value of this asset.
SOL Price Prediction: Resistance at $188.96 Is Key
With bearish pressure mounting, SOL may have difficulty overcoming the key resistance level at $188.96. If the sell-off continues and SOL returns to a bearish trend, its price could decline to $170.41, leading to the liquidation of more long positions.
Conversely, if optimism strengthens and the currency surpasses $188.96, it could rise to $218.90.
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