Solana Price Decline Risks $90M Long Positions Amid Short-Term Bearish Sentiment

• Solana trading volume surges 17% to $3.55 billion as price falls, indicating heightened trader interest.

• Nearly $90 million in long positions face liquidation risks below $123.30, while shorts dominate at $204.18 million above $129.50.

• $8.77 million SOL outflow from exchanges suggests accumulation, supported by consistent U.S. spot ETF inflows since December 4, boosting demand.

Solana price decline sparks liquidation fears for $90M in longs amid market dip. Explore ETF inflows and key levels signaling bullish recovery for SOL investors. Stay informed on crypto trends today.

What is causing the current Solana price decline?

Solana price is experiencing a 1.55% drop to $124.30, influenced by a 1.65% overall crypto market decline on December 23, with Bitcoin and Ethereum falling 2.45% and 2.75%, respectively. This broader sentiment has heightened volatility for SOL, though trading volume rose over 17% to $3.55 billion, reflecting active participation. Intraday traders’ heavy leverage amplifies risks, with $89.54 million in long positions vulnerable near support levels.

How are leveraged positions impacting Solana traders?

The Solana exchange liquidation map from CoinGlass highlights significant exposure for intraday traders, with long-leveraged positions totaling $89.54 million clustered around $123.30 and shorts at $204.18 million near $129.50. This imbalance underscores a bearish short-term outlook, as traders anticipate SOL failing to breach the upper resistance, potentially leading to widespread liquidations if prices dip further. Data shows the highest interest at these thresholds, where small price swings could trigger cascading effects, wiping out leveraged bets and increasing market volatility.

Source: CoinGlass

Such dynamics are common in volatile assets like Solana, where leverage magnifies both gains and losses. Market analysts note that while shorts outnumber longs, any unexpected rally could reverse this sentiment quickly. For context, similar patterns in past downturns have led to rapid rebounds once liquidations clear excess leverage.

Frequently Asked Questions

What are the risks of Solana long positions liquidation in 2025?

In the current market, Solana long positions worth $89.54 million risk liquidation if prices fall below $123.30, exacerbating declines through forced selling. Traders should monitor support levels closely, as this could lead to further volatility, but accumulation trends may provide a buffer against prolonged drops.

Is Solana a good long-term investment despite recent price dips?

Yes, Solana shows strong long-term potential through ongoing wallet accumulations and ETF inflows, indicating institutional confidence. With $8.77 million recently moving to self-custody and steady capital entering spot products, SOL’s ecosystem growth supports recovery, making it appealing for patient investors focused on fundamentals.

Key Takeaways

• Short-term bearish pressure: Solana’s price at $124.30 faces liquidation risks for $90 million in longs, driven by market-wide declines.
• Bullish accumulation signals: $8.77 million SOL outflow from exchanges and ETF inflows highlight growing demand from investors.
• Watch key levels: Support at $123.50 and $117 could determine downside, while breaking $128.23 may spark an upside rally—consider position sizing accordingly.

Conclusion

The Solana price decline reflects broader crypto market challenges, with leveraged positions under threat and trading volume indicating intense activity. However, positive spot inflows and outflows point to sustained interest from both retail and institutional players. As Solana navigates these levels, monitoring ETF trends and technical supports will be crucial; investors may find opportunities in this consolidation phase for long-term growth.

The overall crypto landscape on December 23 saw a 1.65% drop, primarily led by Bitcoin’s 2.45% and Ethereum’s 2.75% losses, which rippled across altcoins like Solana. Despite the dip, SOL’s resilience is evident in its elevated trading activity, suggesting that participants view the current levels as a potential entry point rather than a full retreat.

Delving deeper into trader behavior, the predominance of short positions at $204.18 million versus longs reveals a cautious stance among day traders. This bearish tilt aligns with recent price action, where SOL has struggled to maintain momentum above $128. Experts from platforms like CoinGlass emphasize that such leverage concentrations often precede volatility spikes, advising diversified strategies to mitigate risks.

Source: CoinGlass

Shifting to longer-term indicators, the $8.77 million net outflow from exchanges to personal wallets is a classic sign of accumulation. This movement reduces available supply on trading platforms, potentially stabilizing prices during downturns. Financial analysts often cite such on-chain metrics as evidence of underlying strength, particularly for high-throughput blockchains like Solana.

Adding to this optimism, U.S. spot Solana exchange-traded funds have recorded consistent inflows since December 4. These vehicles allow traditional investors to gain exposure without direct crypto handling, bridging Wall Street and blockchain ecosystems. Data from SoSoValue illustrates this trend, with inflows reflecting broader adoption and capital deployment into digital assets.

Source: SoSoValue

Sustained ETF interest not only bolsters SOL’s price floor but also validates its utility in decentralized finance and non-fungible tokens. Industry observers, including those from major asset managers, note that such products democratize access, potentially driving exponential growth as regulatory clarity improves.

From a technical standpoint, Solana’s weekly chart positions it at a pivotal support of $117, per analyses from TradingView. On shorter timeframes, daily consolidation between $123.50 support and $128.23 resistance keeps traders on edge. A breakdown below the lower bound could accelerate toward $117, while a decisive push above resistance might ignite bullish momentum, targeting higher levels.

Source: TradingView

In essence, while intraday risks loom large, Solana’s fundamentals remain robust. Crypto-native investors and institutional inflows provide a counterbalance to leverage-driven fears, positioning SOL for potential rebounds. Traders are encouraged to prioritize risk management, focusing on verified data sources for informed decisions in this evolving market.