- The crypto price surpassing $140 may create $69M worth of short liquidations thereby fueling an upward price trend.
- An excessive 100X leverage raises trading volatility because of the 6.17M open positions.
- The crypto asset SOL encounters significant resistance at level $140 yet maintains essential support between $100 to $150 which minimizes potential liquidation events.
The cryptocurrency Solana (SOL) just experienced price volatility which dropped its value by 5.5% to trade at $130.94 . The cryptocurrency has demonstrated price fluctuations from $130.73 to $139.89 across the previous day period.
However,Analyst Ali suggests that an upward movement toward the $140 price level could lead to significant market implications, as nearly $69 million in short positions are at risk of liquidation.
SOL Eyes $140 Resistance Amid Liquidation Risks
The value of Solana dropped after the market experienced broader fluctuations sending SOL below its previous peak. Market volatility remains active as price resistance occurs close to $140. A considerable portion of leveraged positions in the market face liquidation risks because the market retains its high liquidity during price surge potential.
Analyzing the Binance SOL/USDT liquidation map, Short positions on Binance SEC Platform has its most intense area of liquidation concentrated at the $134.5 to $140 price range. A short squeeze scenario will take effect when SOL maintains its upward trend beyond existing levels which will trigger traders to close their positions to prevent losses.
High Leverage and Liquidations: SOL’s Path to Volatility
The $69 million potential liquidations revolve around the leverage levels that appear on the liquidation map. The usage of 25x leveraged positions coincides with 106.80K while 2.58 million belongs to traders utilizing 50x leverage and 6.17 million result from 100x leverage positions.
Analysis shows that liquidations serve as accelerants when SOL breaks through important resistance levels. Excessive leverage results in heightened price volatility because it produces unpredictable large price movements.
Solana traders observe a $140 resistance zone while the price rests at $130.94. The upcoming rally should gain acceleration because strengthened bullish momentum triggers immediate short position liquidations above $140.
The price behavior of Solana demonstrates high volatility as $69 million in short liquidations exist at the $140 price area.
SOL Liquidation Spikes Signal Key Market Shifts
According to the SOL Total Liquidations Chart traders who were betting against SOL had to repurchase their positions because short liquidations surged significantly.Around mid-December to early January, SOL’s price rallied towards $250, triggering substantial short liquidations .
The biggest liquidation event which occurred on February 20th produced a long-term liquidation break exceeding $90 million that created significant market contraction probably caused by institutional activities or economic factors. The SOL price reached stabilization between early March and settled at $150 while liquidation figures decreased indicating a temporary relief from market volatility.
Strong resistance zones exist between $250 to $300 since SOL encounters substantial selling pressure that prevents price increases. The price range from $100 to $150 acts as a supportive area that decreases SOL’s vulnerability to liquidation.
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