Hold on tight, crypto friends! 🚀 Is a price earthquake coming for Solana after Binance made a move? 📉
Attention, people! The crypto market is shaking violently, and Solana [SOL] is in the eye of the hurricane. Imagine that, after almost a month of pure green, a giant red candle arrived to put a stop to the profits! 😱 SOL, the gem of many, is closing the week down 15% from $188, and right now, the price of $160 is on shaky ground!
The thing is that Binance, one of the heavyweights, sent almost 110,000 SOL to Wintermute! And it's not just any move; this seems like a masterstroke. When SOL was around $180, people were going crazy betting it would reach $200; a bunch of retail investors were super leveraged and in long positions! But the market turned the tables on them, and on August 1, $46 million in long positions of Solana were liquidated. The hardest hit in a single day since the beginning of the year! 💥
Despite that, people are still betting big! Data from Binance shows that 78% of positions are still long, meaning the majority believes SOL will go up. That's why Binance's move seems well thought out: to lower selling pressure at a time of low liquidity, take the 'excess' leverage out of the market, and leave it ready for a cleaner 'restart' before it accumulates again. It's as if they are preparing the ground for a new phase. 🤔
Now, the big question is: will the $160 hold? Because SOL has already fallen below a lot of prices at which it was bought, leaving many with losses. And if liquidations continue, this could just be the beginning of a bigger drop! There's a lot of SOL that was bought between $140 and $150, so that area could be a key point for the big players, like Binance, to buy again.
With losses increasing and bets still heavily leaning towards the price going up, it is very likely we will see a retest of those $140-$150 levels unless the market environment changes and becomes super bullish. So stay alert, as SOL's future could depend on these moves! 🧐$SOL
