Why is Solana price down 6% today? (8 Oct)
Solana sol-4.04%Solana, the sixth-largest crypto asset by market cap, dropped 6% to an intraday low of $218.4 on Oct. 8, before settling at $221.7 as of press time. At this price, the token is down 12% from its highest point in September.
The token’s price fell as investor demand for SOL weakened after bulls failed to breach the $237 resistance level that has held firm all week. With momentum tilting toward the bears, the altcoin broke below its local support at $225, deepening the sell-off that came as traders booked profits and moved away from riskier assets following the U.S. government shutdown, which has rattled broader market sentiment.
Another major factor behind Solana’s price decline was the $606 million in liquidations across the crypto market observed yesterday, with more than $460 million wiped out from long positions alone.
Solana was no exception, as it faced nearly $40 million in long liquidations compared to only $10 million in shorts.
When exchanges start force-closing leveraged longs, it often sets off a chain reaction that often drags prices lower.