Solana’s Recent Decline and Potential for Rebound
Solana, a prominent cryptocurrency, experienced a significant decline last week, with its value dropping by 20% compared to its monthly high. This downturn resulted in the loss of billions of dollars in value, with over $400 million in bullish positions being liquidated, according to data from Coinglass. The liquidations, which occurred mainly on Monday, totaled over $250 million, with an additional $82 million being liquidated on Friday.
Impact of Liquidations on Solana’s Price
The increase in liquidations had a bearish effect on Solana’s price, causing it to drop to a low of $192. This decline was also accompanied by a decrease in open interest in futures, which fell to $13.4 billion from a monthly high of $17.1 billion. The reduction in open interest suggests that investors are becoming increasingly cautious, which could further impact Solana’s price.
Bullish Catalysts for Solana’s Rebound
Despite the recent decline, there are several bullish catalysts that could contribute to Solana’s rebound in the coming weeks. One such catalyst is the recently introduced Rex-Oropy SOL + TF-ETF, which has attracted significant inflows, indicating robust demand. The ETF currently has assets under management of around $301 million, making it one of the largest altcoin ETFs. Additionally, the upcoming Alpine Glow network upgrade, which is expected to improve Solana’s performance, could also provide a boost to its price.
Technical Analysis of Solana’s Price
A technical analysis of Solana’s price reveals that it recently crashed to a significant level of $191, which is the end of the trading range of the Murrey mathematical lines and the 38.2% Fibonacci retracement level. The decline also coincided with the 100-day exponential moving average, suggesting that the price may bounce back and potentially test the psychological level of $250 again. Such a move would represent a 26% upward trend from the current level.
SOL-Price diagram | Source: crypto.news
Conclusion and Future Outlook
In conclusion, while Solana’s recent decline has resulted in significant losses, there are bullish catalysts on the horizon that could contribute to its rebound. The introduction of new ETFs and the upcoming Alpine Glow network upgrade are expected to improve Solana’s performance and attract more investors. As the cryptocurrency market continues to evolve, it is essential to stay informed about the latest developments and trends. For more information on Solana and other cryptocurrencies, visit https://crypto.news/solana-wipes-out-billions-key-catalysts-point-rebound/
