After a month of recovery, Solana's price has reached around the $160 mark, sparking discussions about its market implications. While this price surge is seen as positive news, it raises concerns about potential liquidations totaling $3 billion if the price corrects further.
Market Surge and External Factors
The crypto market experienced a boost recently, partly influenced by the dramatic event of an assassination attempt on Presidential Candidate Donald Trump. This unexpected news has coincided with Solana’s price rally, which saw a 13% increase over the past week, hitting the $160 mark. The price boost for Solana comes after a period of struggle, exacerbated by a broader market slump.
Influence of Solana ETF Discussions
The talk of a potential Solana ETF has reinvigorated demand for the altcoin. As buying pressure mounts, technical indicators suggest further upward movement. Analysts predict that if the trend continues, Solana’s price could reach $175, surpassing the resistance level at $168. However, this upward momentum also brings liquidation concerns.
Liquidation Risks at $176
Crypto analyst Ali Crypto has highlighted that if Solana's price hits $176, there could be liquidations amounting to $2.98 billion. These are primarily short positions, which means sellers would likely sell off at this price point, causing the price to drop again. To sustain a bull rally and avoid a significant price correction, Solana needs to surpass this $176 resistance.
Future Price Predictions
Despite recent gains, there are concerns about sustaining the rally. Weighted sentiment is dropping, indicating potential bearish sentiment in the market. The failure to reach and hold the resistance level at $163 further suggests a possible pullback. The Long/Short Ratio from Coinglass indicates a potential correction before any continued upward trend.
Crypto analyst Captain Faibik has suggested that if Solana can break past the $176 resistance and maintain momentum, it could potentially reach as high as $1,000 in the long term.
Conclusion
The approval of Ethereum ETFs has increased interest in Solana, as companies prepare for S-1 filings. If a Solana ETF is approved, it could drive the price to new heights, potentially outperforming Ethereum. Currently, the buying pressure has helped Solana reach $160, but a continued rally might face significant liquidation challenges, potentially wiping out $3 billion from the market.
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