Why did Solana decrease 6% in the last 24 hours?

Solana is 6% down, which reflects the wider decline in the market, because liquidations contribute volatility.

Solana (Sol) is down in the middle of a wider market decline, caused by a spike in liquidations. On Monday, 19. Maja, Solana fell 6.02%, trading from $ 163.97 in the middle of a Refund in the entire sector caused by current macroeconomic uncertainty.

Almost all crypto tokens that are not stable today were in red, and several patent two-digit losses. Bitcoin is least affected, only loses 0.52% and still trades $ 104,770. The reason for the fall is probably due to widespread liquidations of long positions, which usually cause instability.

Total long and short liquidations in the last 25 hours were $ 642.65 million. For Solana, this figure was in $ 23 million. In both cases, most liquidations arrived from long positions. This suggests that Futures traders will overestimate the market performance in this point.

Liquidations, disruption of Solan drive down

Spike in liquidations has a strong impact on instability. Specifically, liquidations increase the supply of tokens in circulation, which can put pressure on their price. In this context, the return of Solana is in line with the wider market trend.

However, many traders predict the beginning of Altcoin season, which could benefit Solana. For example, Bitmek co-founder Arthur Haies believes that Altcoin Season can begin when Bitcoin reaches $ 110,000. This is likely to turn their Bitcoin gains in even greater potential gains with Altcoins.

At the same time, Solana also sees some positive signals. For example, recently approved 2K Solana ETF Video $ 30 million In inflows from its launch in February. This suggests that it is probable to approve of Solana ETFS in the United States to serve as a future price catalyst, especially as ETFs make it easier for some investors to obtain exposure to crypto tokens.