The crypto market is facing high price volatilities, and traders betting longs in major altcoins have been aggressively wiped out. Solana (SOL) traders have been mostly affected by this trend, as data from Coinglass reveals massive one-sided liquidation on SOL in the last hour.
The negative price trend has extended to the Solana derivatives market, with traders opening long positions on the sixth-largest cryptocurrency by market capitalization suffering massive losses.
Solana bulls lose $6.77 million
Notably, the data shows that Solana traders betting on the asset’s potential surge have been liquidated by a massive $6.77 million in minutes, compared to just $200,530 liquidated in shorts.
Notably, Solana saw its 1-hour liquidation trend put traders in a total loss of $6.97 million, suffered majorly by traders betting on the bullish side, thereby resulting in a massive 3,276.05% liquidation imbalance. This highlights significant bias in investor sentiments as market uncertainty continues to linger amid the prolonged crypto market bloodbath.
While recent price movements from leading cryptocurrencies including ETH, XRP, SOL, etc. have seen the derivatives market favor bear traders as bulls continue to get massively wiped out, it is usually observed that voluminous one-sided positions like this can leave the concerned cryptocurrency vulnerable to sudden liquidation reversals if prices move against the majority. Hence, the liquidation trend might flip against the short positions in the next minutes, causing them to suffer higher losses.
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However, traders have formed the habit of watching the market closely in situations like this to see if the aggressive liquidation imbalance could set the stage for more volatility or if there could be a reversal in market sentiments.
SOL breakout still possible?
While SOL has joined the negative price trend witnessed across the broad crypto market, with its price declining lower beyond key resistance zones, it appears that Solana has retained optimism from traders as speculations suggest a rebound may be near.
Amid the growing institutional interest spurred by the potential launch of the Solana ETF and ecosystem development witnessed in the Solana ecosystem, analysts have predicted that SOL could still break out to a massive $350 in 2025 despite hitting a low of $201.55 on August 29.
While investors are bullish on SOL’s price potential in the long term, it is not certain if the current price correction will wrap up anytime soon. Hence, traders are cautiously betting on the asset to hedge against sudden losses.
