#CryptoStocks

Listen, my friend, this is what is happening with Solana, and it could be very dangerous.

The SOL stock is currently trading at around $145.50 - at first glance, it doesn’t seem strange. But if you dig deeper, especially into the derivatives data (futures and others), you'll find that the market is filled with short positions, especially between $146 and $170. This means a large number of traders are betting on price declines, and they are doing so with high leverage.

What is short pressure?

When many people bet on a price decline, and then the price suddenly rises, brokers start forcibly closing these unprofitable positions. This is called liquidation. To close a position, the asset must be repurchased, which creates additional demand. The increased demand raises the price further, leading to the liquidation of subsequent positions, and so on. It turns into a snowball effect - a massive growth that feeds on itself.

Coinglass shows that the biggest risk area lies between $150 and $163, where short sell positions worth tens of millions of dollars are at risk, especially on the Bybit exchange. These are not just individual bets; they are a wide array of traders, many of whom are following a bold strategy.

If the price of Solana rises by just a dollar or two and surpasses the $146-$148 range, a wave of liquidations may begin.

Overall, the market has now become like a tightrope. A strong push upwards could lift it.