Solana (SOL) Sees Uptick in Long Liquidations as Price Decline Continues

Solana (SOL) has seen an increase in long liquidations as its price continues to decline. Traders who anticipated a rally and bought SOL have faced liquidations as the value of the coin has plunged by 19% in the last month. Long liquidations, which occur when the value of an asset drops unexpectedly, have totaled $27.36 million in the past six days alone. However, despite the decline in price, the demand for long positions in SOL remains strong, as indicated by the predominantly positive funding rate. The funding rate is used to ensure the contract price stays close to the spot price and a positive rate suggests a strong demand for long positions. SOL’s long traders should be wary of further price decline, as readings from its Chaikin Money Flow (CMF) indicate a steady outflow of liquidity from its spot market. If this trend continues, the price of SOL may drop to $122.80. However, if market sentiment turns bullish and accumulation increases, the coin’s price may climb to $148.15.