In a significant market downturn, traders and investors liquidated over $1.08 billion worth of long and short positions within 24 hours, causing fear across the cryptocurrency landscape.
Points
- $307 million worth of Solana （SOL） transferred to centralized exchanges （CEXs）.
- SOL’s price declined, breaking a crucial support level.
- Market analysis and expert comments on SOL’s price movement.
- Technical analysis of SOL and potential future price levels.
In this market downturn, traders and investors have liquidated over $1.08 billion worth of long and short positions in the last 24 hours. This massive liquidation has created fear across the cryptocurrency landscape.
Whales/investors transfer 2.38M SOL to CEXs
https://x.com/whale_alert/status/1820471058073301432
Solana price analysis
At press time, SOL is trading near $126 and has experienced a price decline of over 10% in the last 24 hours. Meanwhile, trading volume has skyrocketed by 235% during the same period. This massive increase in trading volume indicates a higher participation from traders and investors.
Expert comments on SOL
Looking at this ongoing activity, a former Coinbase angel investor made a post on X （previously Twitter） that SOL is not falling naturally, rather, it is being pushed down by some whales by creating fear in the market. In the post, he also noted that due to panic, noobs sell off their holdings and allow the whales to buy back at a lower level.
Dear noobs, $SOL is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower’. They are stealing your bags and will make you buy back at a higher price.
https://twitter.com/0xMert_/status/1820294901214413002
According to expert technical analysis, SOL has returned above the support level after experiencing a crucial breakdown. This recovery above the breakdown level has reduced the risk of a significant price decline.
Today, if SOL maintains itself above and gives a daily candle closing above $125, there is a high chance of a price reversal. However, if SOL fails to hold this level and gives a candle closing below the $118 level, it could potentially sink to $83 in the coming days.
解説
- CEX （Centralized Exchange）: A cryptocurrency exchange operated by a centralized company where users’ assets are stored and managed by the exchange.
- Support Level: A price level where a cryptocurrency tends to find buying interest, preventing it from falling further.
- Trading Volume: The total quantity of a cryptocurrency traded within a specific period, indicating the strength of market activity.
- Spoofy Sell Orders: Large sell orders placed to create the illusion of selling pressure, causing panic among traders.
The recent transfer of a large amount of SOL to centralized exchanges has caused significant price movements, illustrating the influence of whales in the crypto market. This event underscores the importance of understanding market dynamics and trading strategies. As the market reacts to these movements, staying informed and analyzing technical indicators can help traders make more informed decisions.