Today, on August 3, 2024, Solana (SOL) experienced a significant price drop of over 8% in the last 24 hours, making it the world’s fifth-biggest cryptocurrency. This decline has led to a major breakdown of the crucial support level of $157.
Reasons Behind Solana (SOL) Price Drop
The bearish trend in SOL is attributed to the breakdown of crucial support levels and the negative impact of leading assets like Bitcoin (BTC) and Ethereum (ETH).
Analysis of SOL Price Performance
Currently, SOL is trading around $150 with a downward momentum of over 8% in the past 24 hours. Meanwhile, SOL’s open interest has decreased by over 8% during the same period, indicating a decrease in investor and trader interest.
Furthermore, the recent price drop resulted in the liquidation of approximately $22.44 million in long and short positions. The majority of liquidations were from long positions, totaling $16.22 million, while short positions accounted for $6.22 million.
Key Levels for Solana
Despite significant liquidations, the upcoming liquidation levels stand at $146 on the low end and $162 on the high end. If SOL drops to $146, around $40 million in long positions will be liquidated. Conversely, reaching $162 could result in the liquidation of approximately $147 million in short positions.
Technical Analysis and Future Levels
Expert technical analysis indicates a bearish outlook for SOL as it breaks below crucial support levels and the 200 Exponential Moving Average (EMA) in a 4-hour time frame. Assets trading below the 200 EMA in this timeframe suggest potential bearishness.
Based on historical data and price momentum, there is a high likelihood that SOL could reach $143 and $125 levels in the near future, acting as support levels for the cryptocurrency.
