Alert! Solana (SOL) breaks a critical level, eyes $125
Today, in August 3, 2024 Solana (SOL), the world's fifth largest cryptocurrency, experienced a price drop of more than 8 percent in the last 24 hours. This decline led to a major decline at the critical support level of $157.
Why is Solana (SOL) falling?
With this breakdown, SOL turns bearish and is now heading towards the $125 level. Possible reasons behind this price decline include the breakdown of critical support levels and the negative impact of major assets such as Bitcoin (BTC) and Ethereum (ETH).
SOL cost-performance analysis
At press time, SOL is trading around $150 and has experienced a decline of over 8% in the last 24 hours. Meanwhile, SOL's open interest (OI) has seen a significant decline of more than 8% over the same period, according to data from on-chain analyst firm CoinGlass. This decrease in OI indicates fear and decreased interest among investors and traders.
Additionally, traders and investors liquidated more than $22.44 million in long and short positions during this decline. However, due to the underlying market sentiment, most of the liquidity came from long positions, with $16.22 million of longs being dumped. $6.22 million short positions were liquidated in the last 24 hours.
Solana critical steps
Despite this high liquidity in the last 24 hours, future liquidity levels at the time of writing are $146 on the low side and $162 on the high side.
If market sentiment does not change and SOL declines to the $146 level, nearly $40 million will be lost on the long position. Conversely, if market sentiment changes and SOL reaches the $162 level, approximately $147 million will be lost on short positions.
Technical analysis and upcoming levels
As per Expert Technical Analysis, SOL looks bearish as it provides critical support in the 4-hour timeframe and 200 Exponential Moving Average (EMA) chart. Assets below the 200 EMA in this time frame indicate bullish potential.
Based on historical data and price momentum, there is a high probability that SOL will reach $143 and $125 levels in the coming days. These standards are expected to serve as support for SOL.
