Solana faced renewed selling pressure this week as leveraged traders absorbed heavy losses. Analysts highlighted a fresh wave of long liquidations, reinforcing a familiar warning across crypto markets.
Liquidations Expose Fragile Market Structure
CW noted that high-leverage long positions have faced repeated wipeouts, reinforcing a familiar pattern in volatile markets. Excessive optimism often leads traders to overextend, and the market punishes that behavior quickly. According to Coinalyze data, over the past 24 hours, liquidations reached $14.06 million, with long positions accounting for $13.1 million.
Consequently, this imbalance shows that bullish traders continue to dominate positioning despite weakening structure. However, the market has not supported that bias. Each failed attempt to push higher adds more pressure, forcing liquidations that accelerate downward moves. Besides, this cycle creates sharp volatility spikes that discourage fresh entries.
Distribution Phase Signals Deeper Weakness
Crypto_R0D highlights a broader structural shift that suggests Solana has entered a distribution phase. After a strong rally through 2024 and into 2025, price action now shows multiple lower highs forming a rounded top. This pattern often precedes extended consolidation or decline.
Source: X
Moreover, the loss of the $100–$110 range has shifted that zone into resistance. Price now compresses near $85, a level that lacks strong historical support. Key resistance remains at $100 and $120, while immediate support sits near $80.
Significantly, Crypto_R0D argues that stronger opportunities may emerge below $50. That region aligns with prior accumulation and psychological support. Hence, it offers clearer risk management and better upside potential compared to current levels.
Elliott Wave Structure Points Lower
Morecryptoonl adds another layer of analysis using Elliott Wave theory. According to this view, Solana continues to extend a wave three decline. This phase typically carries the strongest bearish momentum within the cycle.
Additionally, price has already broken below an ascending trendline and failed to hold the $84–$86 retracement zone. That area now acts as resistance, reinforcing the bearish outlook. The next target sits between $78 and $72, where key Fibonacci levels converge.
Importantly, losing the $80 level would further weaken bullish structure. However, reclaiming $86 could stabilize short-term momentum and delay further downside.
At press time, Solana trades near $87.65, reflecting a daily decline of over 3%. Weekly losses approach to 7%, signaling sustained selling pressure.
