Solana Drops 2.20% to $101.28 as investors liquidate Positions
Solana (SOL) is down 2.20% to $101.28 in 24 hours, underperforming a slightly weaker broader market, driven by a market-wide liquidation cascade after Bitcoin broke below $80,000.
SOL’s price move reflects broader market stress and a leveraged long unwind, as Bitcoin’s break below $80,000 triggered over $200 million in liquidations within an hour and pulled down major altcoins like SOL.
The drop was part of a broad market sell-off. Bitcoin fell below the key $80,000 level, triggering a cascade of leveraged long liquidations exceeding $200 million in one hour.
SOL, which historically amplifies Bitcoin’s moves, saw $6.12 million in liquidations during this window. SOL’s decline was less about its own fundamentals and more a symptom of excessive leverage being purged from the entire crypto market.
Before the drop, SOL’s perpetual futures market was heavily long-skewed, with 74.9% of accounts positioned for higher prices and a positive funding rate.
While open interest rose slightly, this crowded positioning fueled a rapid unwind when Bitcoin broke down.
Market structure was primed for a sharp correction, and the Bitcoin-led sell-off efficiently triggered it. A flip to negative funding rates could signal excessive pessimism and a potential local bottom.
Technically, SOL is testing the 61.8% Fibonacci retracement level at $101.09, with immediate resistance at its 30-day Simple Moving Average near $102.05.
The key near-term trigger is the broader market’s reaction to the upcoming Federal Reserve meeting (October 27–28) and September PCE inflation data (October 29).
If Bitcoin stabilises above $80,000, SOL could rebound toward $104.80. However, a break below the recent swing low of $98.80 would open the door for a deeper correction.
The short-term trend is bearish, contingent on Bitcoin finding a floor. Watch for: Bitcoin’s price action around $79,500–$80,000; a reclaim could provide relief for SOL.
SOL’s drop was driven by a macro-driven liquidation event, not a coin-specific failure. Its recovery now depends on Bitcoin stabilising. SK Hynix Postpones Plan to Take Solidigm Public
