A major Solana holder realized more than $4 million in losses after offloading 47,401 SOL as the Drift Protocol exploit triggered broader market uncertainty and forced exits.
This is likely an example of how operating risk has directly put pressure on prices, with SOL falling 5.85% to $79.26 as selling activity accelerates.
The same address had accumulated 91,891 SOL worth $16.04 million to $175, highlighting a transition from detention to capitulation under deteriorating conditions.
Pennant Break Signals Greater Downside Risk
Following this pressure, SOL fell below its bearish pennant near $80, confirming continued consolidation.
At press time, the price was testing $78.50 as immediate support, now a critical near-term level.
The rejection near $93.26 left buyers trapped, increasing supply on a rebound. As the price remained below structure, the market entered a post-breakout phase.
A loss of $78.50 could expose the $60 level as the next liquidity target.
As the price weakened, the Stochastic RSI fell towards oversold levels. At press time, it was near 9.03, reflecting sustained selling pressure.
However, oversold conditions failed to trigger a recovery, with rebounds remaining superficial.
This trend shows that buyers do not have the strength to change dynamics.
Instead, each reset has aligned with a continued bearish drift. This trend reinforced the weak bullish conviction.
Why are the best traders still heavily long?
Despite the weakness, Binance’s top traders maintained a strong long bias. Around 79.79% of accounts were long, compared to 20.21% short.
This pushed the Long/Short ratio to 3.95, reflecting aggressive positioning.
However, these crowded long positions have increased downside vulnerability.
As positions strengthened on rebound expectations, the risk of liquidation increased. This divergence suggests traders remained early, increasing downside risk.
Long liquidations reinforce continued downside pressure
As the imbalance persisted, liquidation data showed that long positions absorbed most of the losses.
Over $10.49 million in long liquidations occurred, compared to $511,070 in short liquidations. This gap shows that bullish traders have been chased away repeatedly.
Each wave of liquidation added selling pressure and accelerated declines. These conditions corresponded to phases of rupture and a rapid unwinding of the leverage effect.
As a result, the market continued to reset to lower levels.
Is Solana heading towards $60 next?
Solana (SOL) reflected sustained bearish pressure on several signals. Whale capitulation, structural collapse and liquidations remained aligned.
The market showed no clear signs of absorbing the selling pressure.
At the same time, long positions remained high despite the price decline. This imbalance has maintained downward pressure.
Current conditions suggest that SOL could test the $60 level next.
Final summary
- The Drift Protocol exploit triggered uncertainty, accelerating sell-side pressure and sending SOL down 5.85% to $79.26.
- Cascading liquidations added selling pressure, accelerating downward moves.
