Solana (SOL) is facing mounting liquidation pressure, with approximately $60 million in long liquidations stacked below the spot price against roughly $16 million in potential short liquidations above it, according to figures from the Market Sniper Pro account on X. Large positions remain 88% long, while smaller accounts show 59% bullish exposure.

The combination of leveraged positioning, weakening momentum and concentrated downside risk has kept the market on alert as SOL tests the $92 level.

Large Traders Maintain Bullish Positions Despite Downside Exposure

Market Sniper Pro has highlighted an unusual positioning imbalance. According to the account, positions exceeding $1 million are 88% long, while smaller positions carry a comparatively lower bullish allocation of 59%.

The split suggests larger accounts remain more confident about SOL's direction. That confidence, however, contrasts with the liquidation map's considerable downside exposure, creating a notable setup for traders tracking leveraged market activity.

The liquidation heatmap identifies roughly $60 million in potential long liquidations below spot, while short liquidations above the reference price total about $16 million. Long liquidations occur when falling prices force leveraged long positions to close, while short liquidations follow rallies as shorts are bought back — and once triggered, these forced closures can amplify the move that set them off. The gap leaves substantially more leveraged exposure vulnerable in a decline.

The map places SOL's reference price around $92. Long liquidation clusters extend toward $85 and, further down, $71. The largest individual concentration sits near $71 and represents approximately $17 million. These figures mark potential liquidation zones rather than guaranteed future price destinations.

$85.12 Emerges as a Key Level for Large Positions

The post also flags a notable large-position concentration: a $5 million position level around $85.12, sitting approximately 7.6% below the reported spot price.

The concentration merits attention because it falls within the map's downside liquidity region. A decline toward $85 could expose additional leveraged positions, and forced closures could then increase selling activity around that area. The heatmap also shows several smaller liquidation clusters between $75 and $85, while the $71 concentration further down represents the largest individual exposure and could trigger additional forced selling if reached.

Above spot, liquidation clusters appear around $98, $103 and $109. These areas represent potential short liquidations if SOL stages a recovery, with forced short closures potentially adding buying demand during an upward move.

Daily Technical Indicators Continue to Favor Sellers

Daily chart data on TradingView provides further context for the liquidation figures. SOL recently traded around $92.446, following a decline from approximately $122. Price action remains confined within a descending channel established during October, with the channel's upper boundary limiting recovery attempts and the lower trendline offering a reference for potential downside support. Recent candles show sellers retaining control despite occasional buying attempts.

The Relative Strength Index reads 27.57, placing SOL below the commonly watched oversold threshold of 30, while its signal average stands at 34.30, underscoring recent momentum weakness. Oversold readings flag stretched selling conditions, though they can persist for extended periods inside established downtrends. The MACD remains firmly in negative territory, with a reading of -4.209 against a signal line of -3.363 and a histogram at -0.846, reflecting continued bearish momentum.

Two Scenarios in Focus

The indicators leave SOL facing two competing market scenarios. A breakdown could expose the $85 region and the deeper liquidation clusters beneath it. Conversely, a recovery above 98–100 could bring nearby short liquidations into focus, while a stronger reversal would require a break above the descending channel.

For now, leveraged positioning and technical weakness point toward elevated market sensitivity, with the $85.12 concentration warranting attention alongside the larger $71 liquidation cluster. Whether buyers defend current levels or sellers extend their gains remains unresolved; price behavior and shifting leverage are likely to provide the next useful signals.

Source: Cryptofrontnews