- No Solana shorts?
- What does this mean for SOL?
The crypto market is still struggling to recover from the recent bloodbaths, causing leading cryptocurrencies to witness extreme abnormalities in their liquidation events, particularly Solana (SOL), as showcased via data from Coinglass.
Notably, the slow market trend has extended to the Solana derivatives market, as the data shows that Solana has registered an unusual one-sided liquidation that saw $47,990 in longs being liquidated over the last hour.
No Solana shorts?
What makes the data more surprising is that no short positions were opened during the period, as bear traders were seen committing a rare $0 during the same timeframe.
While such a liquidation event is not commonly witnessed in the Solana derivatives market, the zero activity from Solana short traders has sparked curiosity among market participants.
Nonetheless, the Solana hourly liquidation trend, projecting an imbalance ratio that is quite impossible to calculate, has seen market watchers closely monitoring its on-chain activities.
Apparently, Solana has a possibility of having at least $1 in short liquidation during the period, even though it was not recorded, positioning it for a wild liquidation imbalance of 47,990% in mere minutes.
As the trend coincides with the high price volatility faced by Solana, which saw its price almost lose the $200 resistance level, investors are worried that the trend could be posing a threat to SOL’s potential price rebound.
What does this mean for SOL?
It is important to note that, in situations when short traders face little to no liquidations, the basic interpretation is that they have won their bearish bets over the negative movements in the price of the asset at the time.
However, there seems to be a twist in this case, as Solana’s price was seen moving slowly but slightly upwards during the period, showing signs of a potential rebound. While it appears that the asset’s price action did not favor the bulls either, it can only mean that no short positions were opened during the period.
Despite the recurring price downturns, Solana investors are still optimistic about a massive surge in the price of SOL, as the SEC appears to be drawing close to the final review of the Solana ETF proposal.
The eventual launch of the Solana-based investment products positions it for more adoption and institutional demand, which could push its price to new records before 2025 ends.
Source: https://u.today/solana-rockets-47990-in-rare-liquidation-trend-as-bears-go-silent
