Solana, one of the prominent projects in the cryptocurrency market, continues to exhibit volatile movements in the short term. With the recent sell-off from the $96 resistance and the liquidation of highly leveraged positions, the price is seeking to stabilize just above a key support line at $81.30.
Critical threshold in price: $ 81.30 and lower regions
Solana fell from $ 96 in a short time to around $ 89. The 4-hour chart shared by analyst MCO Global shows that Solana is having difficulty breaking this resistance level and the bullish momentum has weakened for now. Although the possibilities for a strong upward move in the short term have diminished, the overall bullish scenario is not completely over.
Experts find it important to maintain the $81.30 support level for a larger-scale rise to be possible. If it can stay above this area, the price may move towards $96 again. Otherwise, if the support is broken, the low levels between $72 and $78 will come to the fore.
It is emphasized that for Solana to continue its upward journey, the price must first hold above the $ 81.30 level. It is stated that if this region is lost, Fibonacci-based points of 77.95, 75.40 and 71.92 dollars will come to the fore.
The short-term supports that stand out in technical analysis are at the levels of $ 84.72 and $ 87.51. These points stand out as areas where the price may pause temporarily during the correction.
Leveraged positions have been liquidated, what will be the direction?
The liquidation of long transactions opened with high leverage played a decisive role in the decline in Solana price. According to CW’s analysis, SOL, which quickly retreated to the 88-89 dollar region in the last break, remained under selling pressure largely due to leveraged transactions.
CoinAnk’s chart shows that the price failed to stay above $90 and liquidity concentration centered around $90, 93, 96, and 99. A significant amount of leveraged transactions had previously accumulated at these levels.
With the clearing of highly leveraged positions, forced selling pressure in the market appears to have largely diminished. However, this does not mean that the price will recover immediately. Solana needs new buyers to recoup its losses.
Currently, Solana is facing initial resistance near $90. The price will need to exceed this level for the rise to gain strength. If this cannot be achieved, pressure may continue in the short term. However, if the price starts to hold above $90, it could be an indication that the market is starting to recover.
Solana has currently fallen below previous liquidity bands and the focus is on whether the selling will subside after long positions are cleared. Conversely, the price might retest the $87 support.
