Solana’s price is experiencing a more significant decline compared to Bitcoin, Ethereum, and XRP this week, attributed to intensified profit-taking and increased liquidations, according to on-chain data reports.
This downturn highlights vulnerability amid heightened leverage and speculation within crypto markets, potentially impacting investor confidence and future trading strategies.
Solana Faces Sharper Decline Amid Profit-Taking Surge
Solana experiences a sharper decline than Bitcoin and Ethereum due to elevated profit-taking and increased exchange balances.
Solana Sees Over 32 Million SOL Deposits
Solana experiences a notable downturn this week, differentiating from Bitcoin and Ethereum declines, due to profit-taking and liquidations. This action reflects a cautious market mood amid broader cryptocurrency fluctuations.
Key figures, including Anatoly Yakovenko and Raj Gokal, have not made recent public statements regarding Solana’s drop. Exchange balances increased with over 32 million SOL deposits, indicating potential selling pressure. CZ, CEO, Binance, stated, “The spike in exchange balances for SOL indicates traders are looking to offload positions amid uncertainty.”
$112 Million in Long Positions Liquidated in Solana
Over $112 million in long positions were liquidated, exacerbating the price drop. This selling pressure contrasts with ongoing developer activity, which remains robust and unaffected by protocol-level issues.
Insights indicate non-regulatory factors and market trends drive Solana’s sharp decline. Historical data suggests 90%+ supply in profit often precedes corrections, making short-term speculative outlooks bleak. Mitrade Privacy Policy Document in English discusses potential impacts on trading behaviors.
Profit Supply Trends Resemble July and August Declines
Previous instances of high profit supply in July and August yielded similar declines. Current patterns align with these occurrences, showcasing a cyclical market trend of rapid profit-taking and corrections.
Kanalcoin experts highlight potential market stabilization if leverage decreases. However, without structural or regulatory changes, short-term volatility is expected to persist until broader market conditions improve. Arthur Hayes, Former CEO, BitMEX, remarked, “The drop in SOL is a sign of the broader market’s fragility; when leverage unwinds, it tends to spiral rapidly.” Mitrade PC Client Installation File – EXE format.
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