- Solana’s recent price drop to $145 has triggered a wave of liquidations in the cryptocurrency market.
- Despite the liquidations, high liquidity at $150 could potentially drive the price up.
- AMBCrypto reports that Solana [SOL] positions worth $9.14 million have been liquidated in the last 24 hours.
Amidst a wave of liquidations in the cryptocurrency market, Solana [SOL] has seen positions worth $9.14 million liquidated in the last 24 hours. Despite this, the high liquidity at $150 could potentially drive the price up.
Liquidations Triggered by Price Drop
Liquidation occurs when a trader’s balance is insufficient to keep a trade open, leading to a partial or total loss of the initial margin. This can be due to high leverage, extreme volatility, or a failed bet. In the case of Solana, the liquidations were triggered by a price drop to $145. Despite this, the high liquidity at $150 could potentially drive the price up.
Open Interest Indicates Continued Trading Activity
Despite the liquidations, traders have not been deterred from the market. This is evidenced by the Open Interest (OI), which rose to $1.45 billion. An increase in OI implies that new money is flowing into the market and traders are increasingly closing their positions. This could potentially fuel the direction the crypto takes next.
Potential for Price Increase
Based on the high liquidity at $150, $160.80, and $178.47, there is potential for the price of SOL to increase. If the altcoin’s price continues to hike, the first target would be $150, at which point it could face some resistance. However, a successful breach of this region could trigger a jump toward $160, which could be a reasonable short-term price.
Conclusion
In conclusion, despite the recent wave of liquidations, Solana [SOL] has potential for price increase due to high liquidity at $150. Traders have not been deterred from the market, as evidenced by the rise in Open Interest. If the price continues to increase, the first target would be $150, with potential for a jump to $160.
