Today, on August 3, 2024, Solana (SOL) the world’s fifth-biggest cryptocurrency experienced a significant price drop of over 8% in the last 24 hours. This decline has caused a major breakdown of the crucial support level of $157.
Why Solana (SOL) is falling?
With this breakdown, SOL turns bearish and now heading towards the $125 level. The potential reasons behind this price drop include the breakdown of crucial support level and the negative influence of major assets such as Bitcoin (BTC) and Ethereum (ETH).
SOL price-performance analysis
At press time, SOL is trading near $150 and has experienced over 8% downside momentum in the last 24 hours. Meanwhile, SOL’s open interest (OI) has also seen a notable decline of over 8% during the same period, according to the data from an on-chain analytic firm CoinGlass. This decline in OI indicates fear and reduced interest among investors and traders.
Additionally, during this price drop traders and investors have liquidated a significant over $22.44 million of long and short positions. However, due to the bearish market sentiment, the majority of liquidation comes from long positions, with $16.22 million of longs being liquidated. Whereas, only $6.22 million of short positions were liquidated in the last 24 hours.
Solana crucial levels
Despite this massive liquidation in the last 24 hours, at the time of writing the upcoming liquidation levels are at $146 level on the lower side and $162 on the higher side.
If market sentiment remains unchanged and SOL drops to the $146 level, nearly $40 million in a long position will be liquidated. Conversely, if market sentiment shifts and SOL reaches the $162 level, nearly $147 million in short positions will be liquidated.
Technical analysis and upcoming levels
According to expert technical analysis, SOL looks bearish as it gives a breakdown of crucial support and 200 Exponential Moving Average (EMA) in a 4-hour time frame. The assets below 200 EMA in this time frame signal potential bearishness.
Based on the historical data and price momentum, there is a high chance that SOL could reach $143 and $125 levels in the coming days. These levels are expected to act as support for SOL.
