Solana Risks $45M Long Liquidation: Will SOL Crash to $134?

Solana is nearing a triangle breakout at $145, with $44.95 million in long liquidations looming below $143. Will SOL crash to $134? With the broader market experiencing a slight pullback, Solana is trading at $144.48. After a nearly 2% surge on May 5, the price is undergoing an intraday decline of approximately 1.5%. Amid short-term volatility, Solana's price is approaching the apex of a triangle pattern, suggesting an imminent breakout. Will the SOL price avoid a breakdown below $143 and the potential liquidation of nearly $45 million in long positions? Solana Price Nears Triangle Breakout On the 4-hour chart, Solana’s price trend is forming a symmetrical triangle pattern, marked by two converging trend lines. This indicates a tightening of the SOL price range near the $145 level.

The recent pullback within the triangle has caused the price to breach both the 50- and 100-period simple moving averages. This raises the risk of a negative crossover between these averages, potentially triggering a sell signal. However, as Solana nears the triangle’s apex, the MACD and signal lines are converging in negative territory, hinting at a possible shift in momentum. SOL Price Targets While Solana continues to trade within the triangle, it remains in a no-trade zone. A breakout from the pattern could test the immediate resistance at $155. A successful breakout rally would significantly increase the probability of Solana reaching the $180 level. Conversely, a breakdown could lead to a retest of the 200-period simple moving average at $134, signaling a potential downside of nearly 7%. Bearish Sentiments on the Rise in Solana Derivatives While Solana holds within the triangle pattern, the derivatives market shows a slight uptick in bearish sentiment. According to CoinGlass’s long-to-short ratio chart, short positions have increased to 51.72% over the past four hours. This shift has brought the long-to-short ratio down to 0.9335, indicating a marginally bearish-dominated market.

Additionally, the SOL exchange liquidation map signals a potential $44.95 million in long liquidations if Solana drops to $143.3. A sharp increase in long liquidations could trigger a more severe correction due to a domino effect.