Solana Sell-Off Wipes Out $300M in Longs as Analysts Eye $65 Target
Solana (SOL) extended a sharp decline after over $300 million in long positions were liquidated in the past 24 hours, including a single $6.69 million liquidation near $73. SOL traded around $83.98 at the time of reporting, down 6.6% intraday and about 28% over seven days. Daily volume surged above $15.46 billion, signalling heavy participation and forced selling rather than organic distribution. Technical commentary points to sustained downside: SOL lost the $100 point-of-control from January 2024 and plunged into a high-volume node between $73–$67. Short-term charts show lower highs and impulsive declines, with immediate rebound interest near $77–$78 but strong resistance at $80.59–$89.61 (38.2–61.8% Fibonacci). Failure to reclaim $89.61 keeps targets at $70 and $62; a weekly Head-and-Shoulders breakdown and a break below the $120–$125 neckline reinforce a macro bearish outlook. Immediate supports cited are $100 and $80, with a decisive breach of $80 exposing $60–$65. Key trading takeaways: elevated liquidation risk, rising volume on pullbacks (favoring continuation), significant resistance overhead limiting quick V-shaped recovery, and clear support thresholds to monitor for short and long positions.
Bearish
The liquidation of over $300M in long positions combined with rising volume on pullbacks signals forced selling and continuation risk rather than a reversal. Key technical factors reinforce a bearish outlook: loss of the $100 point-of-control, entrance into a lower high-volume node ($73–$67), short-term lower highs and impulsive declines, and a weekly Head-and-Shoulders breakdown with a neckline breach near $120–$125. Overhead resistance between $80.59–$89.61 (38.2–61.8% Fibonacci) is likely to cap relief rallies; failure to reclaim these levels keeps $70, $62 and ultimately $60–$65 as plausible targets. Historically, large long liquidations (e.g., past altcoin crashes) have accelerated declines as forced deleveraging triggers stop-loss cascades and margin calls. Short-term impact: elevated volatility, skewed order books with seller dominance, and attractive shorting opportunities or cautious long entries around defined supports. Long-term impact: if SOL finds structural support at $80–$100 and on-chain activity stabilizes, the market may consolidate before recovery; however, a decisive breakdown below $80 would materially increase downside risk and could delay any sustained bull market for SOL.