Orca coin price pulls back over 40% after hitting $2.01

The past 24 hours have been volatile for Orca coin after a sharp intraday swing that saw the Solana DEX token rise to $2.01 before tumbling back more than 40%.

The token now trades near the mid-$1.30 range after its steep pullback.

Short squeeze reversal hits momentum

ORCA’s surge on November 27 came after traders aggressively shorted the token in the aftermath of the $38 million Upbit hack involving Solana-linked assets.

Negative funding rates signalled an overcrowded bearish trade, which later triggered one of the strongest ORCA squeezes of the year.

As the Orca price began to rise, shorts scrambled to cover positions, pushing the token sharply higher in a cascade of forced buying.

Orca Futures Open Interest surged to $22.7 million, reaching its highest level since April.

That wave of leveraged activity powered the token above the $2 mark, but it also exposed it to a rapid cooldown once early longs started taking profits.

The exaggerated unwinding explains why the recent pullback developed so quickly, even as traders remain watchful for the next move.

Breakout tested after rapid selloff

The rally also coincided with a technical breakout from a falling wedge pattern on the daily chart.

Indicators such as the RSI and MACD had pointed to strengthening bullish momentum as ORCA lifted from oversold levels.

The shift encouraged momentum traders to enter the market, and the 24-hour trading volume surged more than 5,000% at the peak of the move.

With the Orca coin price now retreating, the market is testing whether the breakout can hold.

The 61.8% Fibonacci retracement level at $1.256 acts as the first major support after the 78.6% Fibonacci retracement level gave way.

If the token maintains this level, bulls may attempt to rebuild momentum toward the recent $1.524 resistance zone.

A decisive close below support, however, could expose ORCA to deeper retracements toward the $1.055 technical floor.

Strong Orca ecosystem growth counter market fear

Beyond charts and liquidations, the broader backdrop for Orca still carries constructive signals.

The Solana-based DEX has strengthened its position within the Solana ecosystem, supported by integrations such as Liquid Collective’s LsSOL and growing trading volumes.

Governance proposals from the Orca DAO, including treasury-funded buybacks and new validator staking incentives, have reinforced bullish arguments about long-term demand for ORCA.

While the Upbit hack cast temporary uncertainty over Solana-based assets, the exchange’s commitment to reimburse users helped limit the fallout.

Strong ecosystem activity and expanded utility have countered some of the fear reflected in the broader crypto market, where sentiment remains weak.

What’s next for the Orca coin price

The next few trading sessions will determine whether ORCA’s recent drop marks a healthy correction or the start of a deeper cooldown.

Eyes are on the support at $1.256, derivatives funding rates, and changes in Open Interest to gauge whether bullish pressure can return.

If buyback plans progress and Solana’s DeFi sector continues to recover, ORCA could stabilise and work its way back toward key resistance levels.

But for now, volatility remains high, and the Orca coin price continues to respond to shifts in both market sentiment and protocol developments.

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