Solana Hits Breaking Point as Liquidations Surge, Long-Time Holders Exit

Core Insights - Solana is experiencing increased selling pressure as long-term holders distribute their assets, indicating a decline in confidence regarding the altcoin's short-term prospects [1][5] - The surge in long liquidations in the SOL futures market has further dampened market sentiment, discouraging potential buyers [1][6] Group 1: Long-Term Holder Activity - Data from Glassnode indicates a rise in SOL's Liveliness, reaching a 30-day high on September 21, suggesting increased movement of previously dormant tokens [2] - The increase in Liveliness points to profit-taking behavior among long-term investors, as more long-held tokens are being sold [3][4] - The negative trend in SOL's Hodler Net Position Change, which has been consistently negative since August 27, reinforces the bearish outlook for the altcoin [3][5] Group 2: Market Sentiment and Price Predictions - The bearish sentiment is exacerbated by a significant rise in long liquidations, which accounted for 97% of all positions wiped out in Solana's derivatives market, marking a year-to-date high [6] - This wave of liquidations is likely to further erode confidence among bullish traders, potentially driving SOL's price below $200, with a target of $195.55 [6][7] - Conversely, if new demand enters the market, there is potential for SOL's price to recover and rise to $248.50 [8]