Solana’s (SOL) price dipped by 5.84% to trade at $213 after $35.3 million in liquidations over the past day.
As reported by Coinalyze, the liquidation statistics showed that the Solana liquidations on Dec. 10 amounted to $35.1 million. Long positions accounted for liquidity of $32 million against just $3.1 million of short liquidations.
The bearish trend resulted from the general market downturn, with the crypto market cap dropping 4% loss to $3.46 trillion within the last 24 hours.
Solana Liquidations data | Source: Coinalyze
Bitcoin’s inability to flip the $100,000 price to a key support level was key to the broader market direction. The leading cryptocurrency lost another 2% in the past day.
Ethereum’s (ETH) fell to $3,735 within the same period, shedding about 4.6% of its worth. Other prominent crypto assets that lost a lot of value during this period were BNB, XRP, and Dogecoin.
Solana Liquidations: Market Cap Drops as Ecosystem Activity Slows
During the recent bull run, SOL-based meme coins had a combined market cap of $361.8 billion, but within 24 hours, this value fell to $338 billion. The trading volume doubled to 146%, indicating intense sell-side pressure as traders take profit.
Other on-chain metrics do not look optimistic either. These metrics show a decrease in network activity, with daily transactions on Solana’s blockchain dropping more than 50% from Nov. 20 to the present.
Per Dune Analytics, Solana’s daily revenues also significantly declined, losing around 43,471 SOL or $2.7 million from $12 million on Nov. 23. This drop in network activity and revenue shows growing reservations among investors regarding the strength of the Solana ecosystem.
Technical Indicators Suggest SOL Could Retest $180
Meanwhile, the negative divergence between the SOL price and the relative strength index (RSI) further weakens the Solana price outlook. The period from April to November was bullish for SOL.
Unfortunately, this momentum is lacking with the RSI, which suggests the potential for more downward movement if key support levels fail to hold. Currently, the immediate support is set at $200.
If SOL drops below $200, the next support could be around $180, representing a 16% drop from its current position.