Solana's collapse to a 2.5-year low wiped out more than $88 million in leveraged positions, with long traders absorbing 94 percent of the damage.
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Solana drops to $68 as $88M in long positions get liquidated
Solana's collapse to a 2.5-year low wiped out more than $88 million in leveraged positions, with long traders absorbing 94 percent of the damage.
Solana fell 9 percent to $68.53 as of 14:30 UTC on Wednesday, its lowest price since December 2023, according to CoinGecko data. The move triggered $88.45 million in total liquidations across centralized exchanges over 24 hours, with $83.53 million coming from long positions and just $4.91 million from shorts, Coinglass data shows. A total of 12,084 traders were liquidated as SOL volatility passed 12 percent on the day.
"The leverage flush did not happen in isolation," on-chain data from Santiment shows. Daily active addresses on Solana peaked near 5.5 million in early February and have since fallen to roughly 2.91 million — about half the February high. Social volume has also declined, with the latest reading at 39, near the bottom of its three-month range, while social dominance sits at 0.687 percent. Each burst of chatter in recent weeks was sold into rather than bought, leaving little fresh demand to defend support.
The breakdown follows a broader crypto market rout. Bitcoin fell 6 percent to $62,600, Ethereum dropped 6 percent to $1,750, and Hyperliquid declined 9 percent to $65.70. The Bitcoin ETFs have seen 11 consecutive days of outflows totaling $1.4 billion this week alone, according to data from The Block. Arthur Hayes posted on X that he sold his entire HYPE and NEAR positions, citing higher energy prices, three looming AI IPOs, and anticipation of a Trump pivot on AI as reasons for a market top between now and September.
On-chain metrics confirm the structural weakness
Solana's weekly chart shows the severity of the breakdown. Price closed the latest candle near $68.46, down almost 17 percent on the week, and has lost the 0.786 Fibonacci retracement at $73.31, turning former support into resistance. The token was also rejected at the long-term resistance zone around $100, a level that previously acted as support in early 2024. Weekly volume has declined throughout the descent, signaling thin conviction behind each rally attempt, while the weekly RSI has rolled into bearish territory.
The local bottom sits at $60,000 — hit briefly on Feb. 5 — and if that level does not hold, the next major support is unclear. Solana's market capitalization now stands at roughly $39.6 billion, ranking seventh among all cryptocurrencies. A rebound in network usage and steady spot demand would offer the first evidence that selling pressure is starting to ease, though neither metric has shown signs of recovery.
This article is for informational purposes only and does not constitute investment advice.
