Solana demonstrated a sharp daily correction

The last month was a good one for Solana SOL $85.95 Binance-Peg SOL -0.71% Market capitalization $94.38 million VOL. 24 hours $0.16 billion , as its price rose by more than 34%. However, analysts warn that there may be serious difficulties ahead.

According to CoinMarketCap, Solana’s growth has increased its market capitalization to $ 106 billion. However, the Alphractal analytical platform reports risks.

The report notes that in the short term, bears may liquidate positions at $ 247-$ 252.

Instead, the levels of $ 210 and below $ 200 have the highest concentration of liquidations. This means that investors should be careful when opening long positions, as mass liquidations can lead to a sharp price correction.

It is reported that Solana has lost more than 5% of its value in the last 24 hours. One of the possible reasons for this decline is the growing sales pressure.

At the time of writing, Solana’s price reached $ 227, its market capitalization is $ 107.97 billion, and its daily sales reached $ 6.70 billion.

The data shows an increase in Solana’s deposits on centralized exchanges (CEX), indicating that investors are profitably locking in after the recent growth.Analysts believe that the price drop to $ 210 could be a good opportunity for investors looking to enter the market.

However, the latest Coinglass data shows a decline in long positions in favor of short positions, which indicates an increase in bearish sentiment.

In addition, technical analysis confirms the risks: Solana broke through the support level at $ 237, and the Relative Strength Index (RSI) is showing a downward trend. This indicates growing sales pressure and a possible further drop to $ 210.

Nevertheless, strategists believe that after reaching critical liquidation levels, Solana may return to growth.