Solana
Solana Price Prediction – Here are the price targets after +$9 million in liquidations
- Solana revisited $145, sparking a cascade of market liquidations
- High Liquidity at $150 Could Drive Price Up on Charts
AMBCrypto discovered that Solana [SOL] positions worth $9.14 million were liquidated in the last 24 hours. Of this figure, long positions accounted for $2.37 million, while short positions were hit the hardest, with $6.77 million liquidated.
Liquidation occurs when a trader’s balance is insufficient to keep a trade open. This results in a partial or total loss of the initial margin. In some cases, the event occurs due to high leverage, extreme volatility, or a failed bet.
For those unfamiliar, longs are traders who bet on an increase in the price of an asset. Shorts, on the other hand, are those predict A refusal.
AMBCrypto’s investigation revealed that the liquidations occurred due to the price action of SOL. Like other cryptocurrencies in the market, SOL fell on May 2, leading traders to speculate that the price may continue to fall on the charts.
Source: Coinglass
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However, the token had other plans as it reached $145.08 two days later. In fact, SOL price has appreciated by almost 5% in the last 24 hours. If the price continues to rise, more positions, especially on the short side, could be eliminated.
However, the liquidations have not deterred traders from taking a break. This is evidenced by Open Interest (OI). According to Santiment data, SOL’s OI amounted to $1.45 billion. An increase in OI implies that new money is flow on the market. When the OI increases, it means that traders are closing more and more of their positions.
The rise in OI could fuel the next direction crypto takes. Therefore, SOL price may continue to move north in the near term.
However, it is important to note that the OI may not be large enough to trigger a rally. As such, SOL could change hands in a tight trading range of $145 and $150.
Additionally, AMBCrypto observed an interesting thing regarding the funding rate. For context, a positive funding rate implies that the price per share of an asset is trading at a premium. Here, long positions pay funding fees to short positions.
Source: Santiment
Conversely, a negative reading suggests the stock price is trading at a discount. At the time of writing, SOL’s funding rate was -0.009% on the charts.
SOL at $160 seems possible
This high negative reading implies that the shorts have been aggressive. However, the rise in the price of the token revealed that they are not being rewarded. If the parameters remain like this, SOL could strengthen its upside potential and shorts could face another round of selloffs.
Additionally, we also looked at the liquidation heat map which identifies areas of high liquidity. This indicator also tells traders the possible direction in which the price could move.
Based on Hyblock data, it can be seen that there was high liquidity at $150, $160.80, and $178.47 (all yellow in color). This implies that the price of SOL could move towards these zones.
Source: Hyblock
Read by Solana [SOL] Price prediction 2024-2025
If the altcoin price continues to rise, the first target would be $150. At this point. he might encounter some resistance.
However, a successful breach in this region could trigger a rise towards $160, which could be a reasonable price in the near term.