Solana （SOL） has breached a crucial support level, leading to bearish market sentiment and potential further declines, with eyes on the $125 level.
Points
- SOL price breached crucial support level, turning bearish.
- $22.44 million in long and short positions liquidated.
- Upcoming key levels: $146 （lower side） and $162 （higher side）.
- Technical analysis indicates bearish potential, targeting $125.
Breach of Crucial Support Level
Solana （SOL） has recently broken below a crucial support level, signaling bearish sentiment in the market. The price is now heading towards the $125 level, influenced by the breakdown of this support and the negative performance of major assets such as Bitcoin （BTC） and Ethereum （ETH）.
Liquidation of Positions
During this price drop, traders and investors have liquidated over $22.44 million in long and short positions. The majority of this liquidation, amounting to $16.22 million, came from long positions, reflecting the market’s bearish sentiment. Only $6.22 million in short positions were liquidated in the last 24 hours.
Upcoming Key Levels
Despite the massive liquidation, the upcoming crucial levels to watch are $146 on the lower side and $162 on the higher side. If market sentiment remains bearish and SOL drops to $146, nearly $40 million in long positions will be liquidated. Conversely, if sentiment shifts and SOL reaches $162, nearly $147 million in short positions will be liquidated.
Technical Analysis
Expert technical analysis indicates that SOL is currently below the 200 Exponential Moving Average （EMA） on a 4-hour time frame, signaling potential bearishness. Historical data and price momentum suggest that SOL could reach the $143 and $125 levels in the coming days, which are expected to act as support.
Conclusion
Solana （SOL） is facing bearish market conditions after breaching a crucial support level. With significant liquidation of positions and key levels to watch, the market remains uncertain. Investors should monitor these levels closely and consider the potential for further declines.
解説
- Exponential Moving Average （EMA）: A type of moving average that places a greater weight and significance on the most recent data points.
- Long and Short Positions: In trading, a long position involves buying an asset with the expectation that its price will rise, while a short position involves selling an asset with the expectation that its price will fall.
- Liquidation: The process of closing a trading position by selling or buying an asset, often triggered when the price moves against the position.
These explanations provide a deeper understanding of the technical analysis and market dynamics affecting Solana’s price movements.