Solana Shorts Squeezed as Liquidation Imbalance Spikes to 19,138%

Published: 2025-12-31 14:29:33 |

Solana (SOL) experienced a sudden short squeeze during a year-end bear phase as CoinGlass data showed a liquidation imbalance of 19,138%. Short-position traders were liquidated for roughly $300,110 within an hour after SOL rose from $123.50 to a daily peak of $126.57; price later traded around $126.01, up about 1.6% in 24 hours. Trading volume climbed 12.47% to $3.13 billion, signalling heightened market participation. The article notes SOL remains below its January 2025 all-time high ($294.33) and is still down ~35% on the year despite big gains in 2023–24. Technical indicators cited include SOL holding above key moving averages and an RSI near 44, suggesting room for further upside before becoming overbought. Analysts suggest sustained investor interest and avoidance of profit-taking are required for SOL to test the $130 resistance before year-end. Key keywords: Solana, SOL, liquidation imbalance, short squeeze, trading volume, RSI, $130 resistance.

Neutral

The immediate market signal is mixed. A sharp liquidation imbalance and short squeeze can produce bullish momentum in the short term by forcing short-covering and pushing price higher, which may attract momentum traders. Rising trading volume and SOL holding above key moving averages support a near-term bullish bias toward the $130 resistance. However, the broader context remains bearish: SOL is down ~35% year-to-date and far below its January 2025 ATH, and the move described is relatively small (1–2% intraday). The RSI near 44 suggests more upside is possible but not a strong trend reversal. Historically, liquidation-driven bounces (e.g., post-liquidation squeezes on other altcoins) often result in short-lived rallies followed by renewed volatility if fundamental selling pressure persists. Therefore, expect short-term volatility and potential intraday upside, but limited confidence for a sustained bull run unless volume and buyer conviction persist beyond the squeeze and macro/broad-market conditions improve.