Key takeaways
Why did whale Solana’s $26 million long position spark speculation?
This signals strong conviction in a rebound as SOL hovers near a major accumulation zone.
How has extreme leverage impacted Solana’s near-term outlook?
Despite $38 million in long wipeouts, strong buyer defense near $170 supports a bullish recovery.
A whale entered Solana (SOL) market with leverage of $26.14 million long after depositing $10 million USDC on Hyperliquide.
This position reflects extreme confidence in a potential rebound, especially as Solana hovers near its historic accumulation zone. However, 20x leverage significantly amplifies risk if volatility increases.
Highly leveraged bets often influence short-term market structure by drawing liquidity to key resistance areas. Nonetheless, this aggressive entry at a pivotal level suggests calculated timing.
The whale may be expecting renewed buying strength after recent declines, especially as Solana’s technical setup supports a rebound narrative from a long-term ascending channel.
Will Solana bounce back from $176?
Solana was trading near $176 at press time, sitting in a demand zone between $170 and $180, a region that has previously triggered strong bullish reversals.
This level coincided with a lower boundary of the channel that has historically attracted buyers during deep corrections.
Therefore, defending this support could result in a bounce towards $205, and potentially $222. However, a consistent failure to hold the zone could open the door for a decline towards $158.
The green rebound projection on the chart shows how sentiment remains tilted toward recovery, even as downside risks persist amid increasing volatility.
Therefore, Solana’s next move will depend on how aggressively the bulls defend the $170 floor.
Source: TradingView
Is crowd optimism a strength or a warning?
Data from Binance showed that 89.11% of SOLUSD perpetual accounts were long positions at press time. This extreme tilt revealed strong collective optimism and confidence in continued upside in the near term.
Yet such one-sided positioning often precedes spikes in volatility, as excessive optimism leaves markets vulnerable to sudden tightening.
Additionally, while this alignment between retail and whales could spark a rapid recovery, it also raises concerns about overpopulation. When funding rates rise, long traders pay more to maintain their positions, often leading to pullbacks.
So Solana’s near-term fate depends on whether demand will sustain without triggering large liquidations.
Source: CoinGlass
Long sell-offs reveal cracks
Recent liquidation data showed that $38.03 million in long positions were wiped out on exchanges, with Hyperliquid alone clearing $17.24 million.
In contrast, short liquidations totaled only $885,000, highlighting an unbalanced market risk. Bybit and Gate contributed $8.96 million and $4.81 million, respectively, showing that stress is concentrated among highly leveraged traders.
Such liquidation surges often occur before management reversals, eliminating overleveraged players from the market. However, the sustained dominance of sellers by takers suggests that sellers still control the dynamic.
If Solana absorbs this pressure without breaking support, it may confirm strength beneath the surface – but further bursts remain possible if volatility persists.
Source: CoinGlass
Can Solana bulls regain control of the leveraged chaos?
Despite liquidation peaks and excessive debt, Solana’s structure still favors a rebound.
Strong defense near the $170-$180 accumulation zone confirms buyer resilience, supported by whale confidence and strong long holding.
Unless the price falls below $170, Solana is able to reclaim $205 in the near term as the bullish momentum gradually recovers.
