Solana (SOL) price has been reaping the benefits of liquidity rotation, judging by its performance this week.
The cryptocurrency just concluded the week with an aggressive push above $240, making it one of the top gainers among the top 50 coins.
Solana crypto price surged as high as $244 in the last 24 hours, ending the week with a 17% upside.
It was changing hands at $237 at press time. This latest rally pushed the cryptocurrency to an 8-month high.
SOL price was overbought on the 1-day chart after its latest upside. This raised the possibility of a retracement as the price entered overbought territory.
Moreover, it had already started to show signs that the recent momentum was cooling down, which could potentially lead to some profit-taking.
Solana (SOL) Price Risks Selloff for These Major Reasons
The overheated SOL price could potentially lead to a cool-off in the coming week. One of the main reasons for this possibility was a recent transaction that involved the transfer of about 520,479 SOL worth about $125 million.
The whale transaction reportedly transferred the coins from a private wallet to the Coinbase exchange.
Such transactions often denote sell pressure, and could be linked to profit-taking since they occurred as the price achieved a new local high.
The whale address outflows also warranted a look at how the overall whale cohort has been faring, especially in the last 24 hours.
According to Coinglass, Binance spot whales sold off about $14 million worth of SOL in the last 24 hours.
Total whale outflows across Binance, OKX, and Coinbase amounted to about $11 million. In the grand scheme of things, this was a relatively low amount of profit-taking.
A closer look at the derivatives segment reveals why this was the case.
How Liquidations Paved the Way to an Upside
The ratio of longs versus shorts liquidations was skewed, with bearish expectations getting crushed.
The total shorts liquidations on Friday clocked in at $49 million. That was the highest daily liquidation level observed in more than 6 months.
The liquidations may have paved the way for a short squeeze, thus contributing to more upside.
Further investigation revealed that negative funding rates flipped into negative on the same day, which suggests that bearish expectations were high.
The bearish liquidations also occurred after Solana’s open interest pushed as high as $16 billion.
However, as a short liquidation shakeout played out on Friday, whales may start hunting on the other end of the spectrum.
Binance Solana crypto liquidation heatmap revealed that there was about $67 million worth of cumulative short liquidation leverage at the $244 price level.
There was an incentive for price to push to $245, where the cumulative liquidation leverage was higher at $143 million.
Solana’s liquidation heatmap also revealed that there was about $200 million worth of cumulative long liquidation leverage within the $137 price level.
This may incentivize a retracement for a liquidity sweep. SOL price still had significant room for more upside before retesting its previous top at the $295 level.
The cryptocurrency may even push above $300 this month if it maintains the same momentum. However, pullbacks are expected along the way.
It was worth noting that SOL price’s latest upside was backed by an aggressive Solana crypto dominance spike.
This signaled that the latest wave of liquidity rotation favored the network and could potentially support more upside, at least until the next major retracement.
Source: https://www.thecoinrepublic.com/2025/09/13/solana-price-pushes-above-240-on-path-to-300/