Solana Price Hits $160 Creating $3Billion Liquidity Concerns

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As a seasoned researcher with a background in cryptocurrencies and market analysis, I have witnessed the intricacies of the digital asset world for years. The recent surge in the Crypto market, following an attempted assassination on Presidential Candidate Donald Trump, has been an interesting development to observe. One altcoin that has particularly caught my attention is Solana (SOL), which has just hit a new milestone at $160 after a 13% surge over the week.

The unexpected attempt on presidential candidate Donald Trump’s life didn’t have any connection to it, but the Crypto market experienced significant growth nonetheless. This development is reflected in Solana’s price as well, which has recently surpassed $160, marking a 13% increase over the past week.

Solana Price Hits $160 Creating $3Billion Liquidity Concerns

The struggle of Solana’s price for an extended period was further aggravated by the downturn in the cryptocurrency market. However, intriguingly, speculation surrounding a potential Solana ETF has sparked renewed interest in the altcoin. The buying pressure for this crypto is currently quite robust.

Based on strong purchasing activity indicated by technical indicators, there’s a good chance that Solana’s price will rise significantly, potentially reaching $175 if current trends persist. This surpasses the resistance level at $168 identified by analysts. However, this bullish trend could also result in a price drop and concerns regarding potential liquidation.

$2.98 Billion To Liquidate If Solana Price Hits $176

As a researcher observing the cryptocurrency market over the past few days, I’ve noticed a promising development for Solana. After hitting a low of $123, the price has rebounded and currently sits above $160. This upward trend is not without cause – trading volume has experienced a substantial increase, suggesting a surge in demand. As such, it’s plausible to assume that the value could continue climbing if this demand persists.

Crypto analyst Ali Crypto has disclosed that a staggering $2.98 billion worth of short positions will be liquidated if the Solana price reaches $176. Essentially, this means sellers have agreed to sell their Solana tokens once the price hits that level. When these sales occur en masse, it could lead to a further drop in the SOL price.

Solana Price Hits $160 Creating $3Billion Liquidity Concerns

The price of Solana needs to surpass the current $176 level in order for its bull run to persist and overcome any potential corrective movements. If it manages to do so, according to Captain Faibik’s analysis, the token could potentially reach a value of $1000.

Will The Rally Sustain?

The surging optimism behind Solana has caused its price to soar, but there are increasing signs of pessimism emerging among investors. This shift in sentiment could be a warning of potential bearish trends for the altcoin. The price’s failure to breach the resistance level at $163 and subsequent retreat further supports this theory.

Based on the decrease in Long/Short Ratio for the specific altcoin on Coinglass, there’s a likelihood that the coin may experience a correction before resuming its upward trend. Furthermore, the investor sentiment towards Solana was markedly greedy, which is indicative of potential correction due to excessive market buying.

Final Thought

Following the Ethereum ETF’s approval, there has been a surge in demand for Solana as numerous companies have started the S-1 filing process. If the Solana ETF is eventually approved, the price of Solana could soar to unprecedented levels, potentially surpassing Ethereum’s growth. At present, the buying frenzy has pushed the SOL price up to $160, but if this trend continues, it may result in a loss of approximately $3 billion for the market.

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2024-07-18 11:42