SOL Price Tanks as Solana Hit with Massive 143% Liquidation Imbalance

Solana (SOL) traders got hammered with $13.27 million in long liquidations over the past 24 hours, creating a brutal 143% liquidation imbalance as the crypto struggles to break through the stubborn $180 resistance.

Solana (SOL) Bears Seize Control as Price Tumbles 5.05% Amid Liquidation Bloodbath

Solana has taken an absolute beating in the last 24 hours as market volatility ripped through its price. Traders betting on SOL's upward momentum were blindsided, with many watching in horror as their positions got liquidated while bears took the wheel.

Fresh data from CoinGlass shows the damage has been brutal across the Solana ecosystem, with liquidations hitting a staggering $15.63 million. Long traders took the worst of it, losing $13.27 million as Solana's price unexpectedly tanked. This created a jaw-dropping 143% liquidation imbalance between longs and shorts, showing just how many traders got caught with their pants down on this move.

The crypto has shed 5.05% during this rocky period. The downward spiral kicked in after SOL slammed into resistance at $172 and reversed course, crushing hopes for the bullish breakout many had been banking on. At press time, Solana is changing hands at $171.84, still struggling to find its footing.

SOL Trading Volume Crashes 27.38% as Market Confidence Takes a Hit

The recent price action has absolutely crushed market sentiment around Solana (SOL). Perhaps most worrying for bulls is the dramatic 27.38% collapse in trading volume, which has shriveled to $3.98 billion. This massive volume drop suggests traders are losing faith in the asset after it failed to punch through key resistance levels.

Short-position traders weathered the storm better than their long counterparts, though they didn't completely dodge the bullet. Following Solana's rejection at resistance, roughly $2.36 million got wiped from short positions – not small change, but nowhere near the $13.27 million massacre suffered by the longs.

The severe volume drop paired with the enormous liquidations signals that many traders are now sitting on their hands, waiting for clearer signals before jumping back into SOL with serious money.

Solana Bulls Can't Crack $180 Ceiling as Technical Picture Gets Messy

Despite Solana's earlier bounce back to current levels around $171, the bulls seem to have run out of steam. This fading momentum likely explains why the asset keeps getting rejected at the critical $180 resistance that's been capping its upward moves.

Solana (SOL) now faces a make-or-break moment as market watchers eye its dance with the 200-day Simple Moving Average – a key indicator that often signals where prices might head next. How SOL behaves around this technical benchmark in the coming days could determine whether this drop is just a bump in the road or the start of something uglier.

For any meaningful recovery to happen, Solana bulls need to step up their game as the key drivers of upward momentum. If they start loading up and boost trading volume, SOL might have a shot at pushing above $210 in the near term – but that's looking increasingly tough given the current market vibe and sentiment.

Crypto Analyst Chris Burniske Still Eyeing $420 SOL Target Despite the Carnage

Even as the blood spills in the streets, not everyone's turned bearish on Solana's future. Crypto analyst Chris Burniske remains surprisingly bullish on SOL's prospects. According to Burniske, if Solana's price action syncs up nicely with Bitcoin's movements, the crypto could potentially rocket to a whopping $420 – miles above where it's trading now.

This optimistic outlook stands in stark contrast to the current market mood, where many traders seem gun-shy about jumping back in after watching the recent liquidation bloodbath. Burniske's target suggests he views the current pullback as a temporary setback rather than the beginning of a prolonged downtrend for the high-performance blockchain's token.

However, for such a rosy scenario to play out, Solana would first need to overcome its immediate hurdles – breaking through the stubborn $180 resistance, rebuilding that collapsed trading volume, and restoring market confidence that's been severely shaken by recent price action.

Solana at Crossroads as Traders Lick Their Wounds After Liquidation Wave

The next few days will be crucial for Solana (SOL) as traders and investors recalibrate after this significant market shakeout. The massive liquidation imbalance has flushed out many overleveraged long positions, potentially creating a healthier market structure moving forward – though at massive cost to those caught in the liquidation tsunami.

Market participants are now watching key levels like hawks, with $165 emerging as critical support that must hold to prevent further bleeding. On the resistance side, the $180 level that has repeatedly stonewalled upward movements remains the primary hurdle SOL needs to smash through to get its mojo back.

The next wave of price action will likely depend heavily on broader crypto market trends, particularly what Bitcoin decides to do. If the wider market stabilizes or turns bullish, SOL could ride the wave of improved sentiment. However, continued weakness in major cryptos would likely pile more pressure on Solana's already dicey technical situation.

For now, many traders appear to be playing it safe with SOL, waiting for clearer signals before throwing serious money back into the asset after witnessing the absolute destruction this liquidation event unleashed on those who were positioned too aggressively long.