Many investors have struggled to determine the direction of Solana’s movements over the past week, resulting in liquidations of more than $ 250 million.
Both the bulls and the bears will be liquidated
SOL has had an impressive 877% rally since July 20th. The price, known as the “Ethereum Destroyer”, has risen from a low of 22.1 to a new all-time high of $ 216 and became the seventh largest coin by market capitalization.
After peaking at $ 216 on September 9, traders struggled to predict SOL price action. Since then, over $ 250 million in long and short positions has been liquidated, with more than $ 27 million in the last 24 hours.
The source: Bybt
One of the main reasons for such erratic price movements is the “unstable” problem the Solana network experienced on September 14th. A denial-of-service attack caused the blockchain to crash within about 18 hours, which caused panic among SOL owners. The sell-off dropped the price 17% to as low as $ 142.6 in a matter of hours.
Stick to key support
While SOL has continued to decline since the outage, it has taken until today for a critical level of support to be reached. The 38.2% Fib retracement level and the middle band of the Bollinger Band indicator on the daily chart appear to be a strong support for the SOL.
If this wall of demand holds, the SOL can rebound towards the 23.6% fib retracement level at $ 170 or even the all-time high at $ 216.
Daily SOL / USDT chart | Source: TradingView
However, investors need to watch the USD 142 support for the next few days. Breaking this level could result in a steeper correction with the next target being the 50-day SMA and the 61.8% fib retracement level at $ 96.
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According to crypto briefing