Analysis warns: Are the bells tolling for Solana (SOL)?

Did Solana (SOL), the fifth largest cryptocurrency by market value, signal a potential correction?

Solana, which hosted the memecoin super cycle in recent months, has started to fall out of favor in recent days. The rise of major altcoins like XRP and DOGE has led to a decrease in demand for SOL. The end of the memecoin cycle also caused the Solana blockchain to lose ground.

AMBCrypto claimed that SOL, which lost 13% of its value in the last week, will continue to decline. In the analysis prepared, a 8% decrease was predicted for SOL, trading around $227.

Solana (SOL) analysis

According to AMBCrypto’s analysis, Solana’s liquidation levels and technical indicators signal a potential decline.

Data analysis platform Alphractal has released a striking tweet about Solana. The tweet stated that in the short term, traders who have opened short positions will be liquidated between 247 dollars and 252 dollars. The analysis platform reminded that a significant number of long positions have not yet been liquidated.

The following expressions appeared in Alphractal’s tweet;

**“Levels such as $210 and below $200 are home to the highest concentration of liquidations among exchanges. On the other hand, there is a short liquidation around $267.”

AMBCrypto, which interprets the data, emphasized that taking a long position in SOL at current levels is risky. The analysis noted the following;

“SOL is not a suitable option for taking bullish trades, as the increase in liquidation usually results in a price correction.”

Expectations are for SOL price to drop to $210 and attract hot money inflows from that level.

This article does not contain investment advice or recommendation. Every investment and trading transaction involves risk, and readers should conduct their own research when making decisions.