Recently, Solana (SOL) has been fluctuating wildly around $170, with the contract market bleeding heavily, $320 million in liquidations in 24 hours! What exactly happened behind this? What impact does it have on ordinary retail investors? Qing Yao will clarify for you!
Short-term panic, but it may present an opportunity for a drop
SOL was slammed down, partly due to FTX's bankruptcy liquidation secretly selling coins, combined with major institutions shorting, leading to severe price fluctuations.
But historical data shows that every time SOL is oversold (RSI below 25), the probability of a rebound is very high, so don't blindly cut losses, it may be a bottom fishing opportunity!
The exchange crashed, are retail investors being 'targeted for liquidation' again?
Coinbase crashed in the middle of the night, and many people couldn't close their positions, resulting in a price plummet, with liquidated traders crying in the bathroom.
(Qing Yao's view) This is likely caused by insufficient liquidity at the exchange, it's not the first time, retail investors playing with high leverage are always the ones getting burned.
Vitalik Buterin likes the tweet criticizing 'Solana is too centralized', is it a conspiracy or a fact?
The founder of Ethereum, Vitalik Buterin, liked a tweet criticizing Solana, causing the SOL community to explode.
A similar situation occurred in 2023, when SOL dropped 30% only to soar afterwards, so don't be swayed by emotions!
Qing Yao's view: Smart money has already started bottom fishing.
On-chain data shows that some whales (big money players) are buying SOL madly below 170, indicating they think this price is cheap.
Tether issued 300 million USDT, which usually means the market may rebound, as the entry of stablecoins often signals buying.
SOL ecosystem tokens (JUP, PYTH) are oversold, if SOL rebounds, these small coins may take off as well, worth paying attention to!
What should retail investors do?
If you're using high leverage, quickly reduce it, or the next one to get liquidated might be you!
You can buy in batches below 170, but don't go all in, the market may still fluctuate.
Pay attention to SOL ecosystem tokens, when the main force pulls up, these small coins often rise even more sharply!
“Do you currently think SOL is a ‘bottom fishing opportunity’ or a ‘death trap’#币安HODLer空投PROVE
