After a 38 percent drop in the last eight days, Solana looks to be holding above a crucial support level.
Over the previous week, several investors have struggled to accurately time Solana’s price action, resulting in losses of $250 million.
Solana liquidates bulls and Bears
A Solana drop has resulted in a staggering $250 million in liquidations.
Since July 20, the SOL token on the high-throughput blockchain has increased by 877 percent. As a result, the dubbed “Ethereum killer” has surged from a low of $22.10 to a new all-time high of $216, making it the seventh-largest cryptocurrency in terms of market capitalization.
Traders have had difficulty predicting SOL’s price movement from the $216 high on September 9. Over $250 million in long and short positions have been liquidated across the board since the top, with over $27 million in losses occurring in the last 24 hours.
The “intermittent instability” issue that the Solana network faced on September 14 was one of the major reasons for such unpredictable pricing movement. The blockchain was down for around 18 hours due to a denial of service assault, causing fear among token holders. Within a few hours, the sell-off brought prices down 17 percent to a low of $142.60.
Keeping a Crucial Supporter
Although the price of Solana has been changing since the outage, it has not yet hit a critical support level. However, on the daily chart, the 38.2 percent Fibonacci retracement level and the middle Bollinger band appear to be providing SOL with a firm platform.
SOL may rebound towards the 23.6 percent Fibonacci retracement level at $170 or possibly the all-time high at $216 if this demand wall holds.
Nonetheless, during the next several days, investors should keep a careful eye on the $142 support level. Slicing through this area of interest may result in a sharper fall to the 50-day moving average and the 61.8 percent Fibonacci retracement level at $96.