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Solana (SOL), the seventh-ranked cryptocurrency asset by market capitalization, has recorded a massive liquidation imbalance in the last 12 hours. Solana’s inability to shake off bears and further price slips cost bullish traders great loss om the market.
As per CoinGlass data, long position traders saw $4.94 million wiped out within the period, leading to an 8,392% liquidation imbalance.
Notably, Solana had shown signs of breaching its death cross range between $124.11 and $125.42, as it changed hands at $125.28. This likely sparked hopes of a further increase among bulls who bet on the coin’s uptick.
Additionally, with Solana’s Relative Strength Index (RSI) oscillating between 37 and 39, SOL is signaling mildly oversold conditions. Unfortunately, the coin lacked momentum to push for higher price levels despite its volume spike at the time.
However, market volatility plunged SOL further down to a low of $120.78, triggering severe liquidation across the chain. Market analysis indicates that Solana responded to broader market risk aversion as the exchange-traded fund (ETF) outflow of both Bitcoin and Ethereum impacted it.
This affected other altcoins such as Cardano and XRP, as they generally underperformed within the last 24 hours.
As of press time, Solana changed hands at $121.43, which represents a 0.8% decline within this time frame. The trading volume, which suggested a possible recovery, has also suffered a decline of 14.93% to $2.74 billion.
It is worth mentioning that short-position traders did not escape losses. They recorded a mild liquidation of $58,170 as prices initially breached the $125 mark.
Although Solana’s oversold conditions could see the coin rebound at any time, volatility might continue to derail its price. A more sustainable uptick rests on Bitcoin’s stability in the broader crypto market space.
Despite the turbulence that SOL is facing with the price, a Solana researcher, “nxxn” on X, has decided to focus on the positive accomplishments of the blockchain. He highlighted some of those to include the approval and launch of several Solana ETs.
Other notable wins were the launch of Solana Seeker, FireDancer going live on mainnet and Coinbase exchange integrating SOL-based tokens. This has made millions of assets across Solana accessible to users on the Coinbase platform.
Meanwhile, there are positive conversations between Cardano and Solana founders to establish a cross-chain bridge across the two networks. The move is significant given the history of rivalry that previously existed between them.
