$200 Million Solana Longs in

Danger as SOL Nears

Overbought Zone

Solana's price recently breached the $161 barrier for the first time in over two months, signaling a strong bullish momentum. The altcoin's price surge attracted attention from traders, but despite the optimism, there are growing concerns about a potential bearish reversal.

Heavy sell pressure is building, which could threaten the bullish momentum that propelled SOL past key resistance levels.

Solana Traders Are at Risk

Currently, the liquidation map shows that Solana traders are leaning bullish, with a higher number of long contracts compared to short positions.

While this reflects confidence in Solana's upward trajectory, it also poses a significant risk if the market turns. If Solana's price corrects and drops to the $161 support level, more than $200 million in long contracts could be liquidated. This heavy liquidation would impact market sentiment and potentially trigger more selling, exacerbating the price decline.

The presence of more long contracts means traders are betting on the continuation of the bullish trend. However, this creates a

vulnerability. A sudden price drop could trigger a cascade of liquidations, amplifying the downward movement. If the sell-off gains momentum, traders may scramble to close their positions, further weakening Solana's price.