SOL Price Risks Drop Below $200 After Futures Liquidations Surge

Solana is facing mounting selling pressure as long-term holders (LTHs) increase distribution, signaling fading confidence in the altcoin’s near-term outlook. 

The surge in long liquidations across the SOL futures market has further dampened sentiment, discouraging buyers who would typically hold SOL for more than three months. These trends paint a challenging picture for the coin’s near-term recovery.

Solana’s LTHs Ramp Up Distribution

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Data from Glassnode shows a steady rise in SOL’s Liveliness over the past few weeks. The metric climbed to a 30-day high on September 21, highlighting increased movement of previously dormant tokens. 

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Liveliness, which tracks the ratio of coin days destroyed to the total coin days accumulated, offers insight into whether LTHs are keeping or spending their coins. 

As with SOL, when this metric climbs, it suggests more long-held tokens are being moved or sold, signaling profit-taking and reduced conviction among long-term investors. 

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Further, the negative readings from SOL’s Hodler Net Position Change support this bearish outlook. Per Glassnode, this metric has consistently trended downward and returned negative values since August 27. 

This metric tracks the net position of long-term holders over a given period, measuring whether investors are increasing or reducing their exposure. A positive reading indicates that more coins are being transferred into hodler wallets.

Conversely, when it is negative, it signals that long-term holders are distributing their assets rather than accumulating.

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SOL’s persistently negative Hodler Net Position Change highlights that investors who typically stabilize the market are offloading their holdings, adding to the broader sell-off pressure.

Solana Faces $200 Reckoning After Record Futures Liquidations

The reason for the waning confidence among Solana’s long-term holders is not far-fetched. The bearish cloud hanging over the broader market has dragged SOL’s value lower, plunging many bullish traders into steep losses. 

Yesterday, long liquidations on Solana futures surged to a year-to-date high, accounting for 97% of all positions wiped out in the coin’s derivatives market.

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Such liquidations usually erode confidence among participants who had bet on the coin’s upside momentum and could worsen the selloffs.

In this scenario, the altcoin’s price could fall under $200 again and trend toward $195.55.

On the other hand, new demand entering the market could prevent this. If buy-side pressure gains, SOL’s price could reverse decline and soar to $248.50.