solana

Solana faced persistent downward pressure on December 24th as the asset struggled to hold steady above key short-term support levels. Despite ongoing network advancements, the overall market structure signaled heavy caution, with price action largely dictated by aggressive liquidity hunts rather than organic growth.
​The inability to reclaim higher price targets has dampened bullish sentiment, leaving the door open for further short-term declines. Currently, SOL remains trapped within a volatile $122 to $145 corridor, where sellers have successfully stifled any attempts at a sustained breakout. This tightening range suggests that market participants are more focused on hunting liquidation zones than betting on a long-term trend.
​Technical indicators currently mirror this lack of enthusiasm. The Relative Strength Index (RSI) is hovering near the 40 mark, signaling weak momentum, while the MACD remains pinned below the signal line, confirming that bearish pressure has not yet subsided.
Will Whale Conflict Decide Solana’s Next Move?
​On-chain data highlights a dramatic split between major market players, as two high-net-worth addresses have taken opposing, highly leveraged bets on SOL's future.
​One prominent address, "0x0e4," is currently underwater with a 20x long position, facing unrealized losses of over $5.78 million. When factoring in their additional leveraged bets on other assets, their total losses approach $8.5 million.
​Conversely, a rival address, "0x35d," is sitting on a highly profitable 20x short position worth roughly $11 million. This whale has been slowly scaling out of their position, indicating a strategy of disciplined profit-taking. This same trader has seen massive success across other major assets, with total combined profits exceeding $27.7 million, suggesting a dominant bearish influence in the current environment.
​Infrastructure Catalyst: Cross-Chain Expansion for SOL
​In a significant move for network interoperability, a major exchange has introduced direct support for SOL deposits and withdrawals via its Layer-2 network. This integration allows for frictionless transfers between the Solana ecosystem and Ethereum-based liquidity without the need for external third-party bridges.
​By enabling SOL to function as an ERC20 token within decentralized finance (DeFi) applications on the Layer-2 network, this development effectively bridges two massive liquidity pools. While market experts believe this will significantly reduce transaction friction and improve accessibility, the immediate global impact is somewhat tempered by regional regulatory restrictions.
​Liquidity Concentrated Between $121 and $133
​The 48-hour liquidation heatmap points to a heavy cluster of downside liquidity sitting between $121 and $122. This area is packed with leveraged long positions that are highly vulnerable to being wiped out if the price continues to slide. The current price action seems to be gravitating toward this zone as these "buy orders" remain untapped.

On the flip side, upside liquidity is bunched around the $128.5 to $129.5 range, with further resistance layers near $131.5 and $133. These levels represent a stack of short positions that could serve as "magnets" for a relief rally. However, until the market sees a genuine surge in buying volume, any upward bounces are expected to be short-lived and corrective in nature.#solana #CryptoNews #WriteToEarnUpgrade