The cryptocurrency market faced a turbulent start to the week as Solana, a standout performer of 2023, encountered an unexpected crash. This unforeseen development impacted traders eagerly anticipating further gains. It resulted in the liquidation of nearly $20 million worth of long contracts. As Bitcoin whales offloaded their assets, Solana’s price experienced an almost 13% plunge to $65. This marked the most substantial liquidation in the past three months.
During the bearish episode on Monday, Dec. 11, Solana enthusiasts faced challenges as the altcoin’s price briefly dipped to $66. However, the downturn proved to be short-lived. SOL displayed resilience by swiftly recovering, surging by 10%, and currently trading at $72. The sharp correction resulted in the most significant liquidation of long contracts in recent memory. This left traders contending with significant losses.
Despite the sudden downturn, SOL has exhibited remarkable strength in its recovery. The recent resurgence is attributed to robust decentralized finance (DeFi) activity within the Solana ecosystem. Over the last two months, Solana’s price has surged, achieving nearly 5x gains and solidifying its position as one of the best-performing assets of 2023.
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Solana’s Current Standing
As of press time, Solana (SOL) is trading at $71.16, with a market cap of $30.3 billion. The altcoin has maintained its strength above the critical $66 support level, offering a glimmer of hope for traders and investors.
Pseudonymous analyst Bluntz, with a significant following on the social media platform X, expressed optimism amid the market turbulence. According to Bluntz, Solana is the fastest large-cap coin to recover, and the recent correction served to shake out overleveraged traders, setting the stage for a potentially bullish week.
Bluntz’s analysis dives deeper into SOL, sharing a chart that suggests the altcoin’s upward momentum is far from over. With a bold target price of $150, the analyst emphasizes ample room for growth. Despite recent challenges, Bluntz maintains confidence in Solana’s potential, anticipating a substantial extension in the ongoing uptrend.
Adding to the positive outlook for Solana, DeFiLlama reports a significant uptick in the supply of stablecoins on the Solana blockchain. In the past week, stablecoin supply surged by 8%, reaching $1.676 billion. Notably, the second-largest stablecoin on the chain, USDC, experienced a remarkable 20% growth, reaching $735 million.
Also Read: Solana (SOL) Price Prediction: Mid-December 2023
In conclusion, Solana’s rollercoaster ride on Monday underscored the cryptocurrency’s resilience in the face of market fluctuations. Despite the sudden crash leading to substantial liquidations, the quick recovery and positive sentiments from crypto analysts suggest that SOL’s journey is far from over. With robust DeFi activity and stablecoin surges, Solana remains a focal point for traders and investors seeking opportunities in the dynamic cryptocurrency landscape.