Cryptonews Price Analysis

Liquidations Rock the Market, but Solana Clings to Key Levels – Is $300 in Sight?

Amidst a $1.6 billion tidal wave of liquidations yesterday, Solana proved among the most resilient to the market downturn, stoking anticipations of a potential new all-time high.

Junior Content Creator

Harvey Hunter

Junior Content Creator

Harvey Hunter

About Author

Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.

Author Profile

Last updated:

December 10, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Liquidations Rock the Market, but Solana Price Holds Key Levels

With today’s 4.27% price lapse, the Solana price finds itself at a critical juncture as it retests crucial supports to its uptrend so far. Losing which, stands to derail bullish end-of-year projections for the front-running altcoin.

These levels mark a potential turning point from the 4.01% loss over the past week, highlighting a crucial moment for reinstating Solana’s path to a new all-time high.

Particularly amidst elevated trader activity, with trading volume surging 154% to $9.62 billion over the past 24 hours, increased volatility stands to bolster Solana’s next move.

Bitcoin Dip Sparks Liquidation Landslide

Bitcoin’s sudden dip to $94,000 sparked market-wide volatility, with increased supply pressure triggering over $1.6 billion in liquidation over a 24-hour window, according to coinglass data.

Total liquidations chart. Source: Binance.

The event marks the biggest since 2021. While the short side has lost only $154.6 million, the majority of the losses stem from long-side optimistic traders.

This ongoing pullback is assumed to be a long squeeze, as heightened optimism led to highly leveraged positions being liquidated.

Solana Price Analysis: Is $300 Next?

The recent downtrend appears poised to come to a head as the Solana price holds strong following a test of a critical support juncture.

SOL / USDT 4H chart, descending channel pattern. Source: Binance.

The altcoin seems to have made a decisive bounce from the lower support of a descending channel pattern forming since its last high. This bounce not only affirms the pattern’s integrity but also solidifies a support zone between $210.58 and $203.56.

This strong backing makes a reversal credible, eyeing an advance towards a retest of the pattern’s upper boundary next. Even more so, the Relative Strength Index (RSI) stint in oversold territory lends to a bullish correction.

Given the Solana price finds the momentum for a bullish breakout of the pattern, it would set a price target around $275, though the uptrend could well continue towards the $300 mark.