On Saturday, Solana has not only flipped to the green zone, it has also recorded the highest daily price surge among all 10-largest cryptocurrencies by market capitalization. Amid this positive trend, the leading altcoin has seen the majority of its bearish traders wiped out in its 24-hour liquidation event, according to data from CoinGlass.
Solana bounces back in favor of bulls
After registering a notable 4% increase in its price over the last day, Solana has experienced a wide gap in its long and short liquidations, setting its derivatives market up due a liquidation imbalance of 111.7% within the past day.
In the last 24 hours, over $15 million in SOL was wiped out from its derivatives market due to the high price volatility witnessed during the day.
Meanwhile, traders opening short positions accounted for the largest portion of the losses suffered during the period. Notably, the data shows that long traders recorded only a minor loss of $4.95 million during the day, while short traders faced a major loss of $10.48 million.
The large gap in the long and short liquidations has seen Solana record a mild liquidation imbalance of 111.7% in favor of traders betting for its potential upsurge.
Apparently, bulls were not entirely favored as they were not completely exempted from the liquidation, they only endured a relatively lighter impact compared to the significant losses faced with traders betting against SOL’s upside momentum.
This is because Solana was spotted trading deeply in red territory before its sharp reversal to the gainer’s side. As such, the sudden reversal in SOL’s price during the 24-hour period caught both sides off guard. However, short traders bore heavier losses as Solana sharply recovered to lead the day’s top gainers.
While this trend suggests that buyers are increasingly taking control of the market despite the volatility, Solana is poised for further price upswings, preparing the market for a major price breakout.
While the countdown to the SEC’s final review on spot crypto ETFs has begun, market watchers are confident about the possible launch of a Solana ETF soon, further driving momentum for the token and pushing its price to set new records soon.