Solana Triggers Record Liquidation Imbalance, Defying Year-End Bearish Forecast

Source: CoinTribune Original Title: Solana Triggers a Record Liquidation and Surprises the Crypto Market Original Link: https://www.cointribune.com/en/solana-triggers-a-record-liquidation-and-surprises-the-crypto-market/

Market Overview

Solana has demonstrated remarkable resilience at year-end, defying bearish market forecasts with an unprecedented reversal that trapped short sellers. In just one hour, more than $300,000 of short positions were liquidated, creating an impressive imbalance of 19,138% on the Solana market.

Price Action and Technical Signals

The price of SOL jumped from $123.50 to $126.57 before stabilizing at $126.01, representing a 1.63% increase. This rapid turnaround occurred while Solana remained above its moving averages, with an RSI of 44.39—far from the overbought zone. Trading volume surged 12.47% to reach $3.13 billion, signaling strong market participation.

Short-Term Outlook

While the market remains marked by a bearish climate, Solana demonstrates strong resilience. If this bullish momentum continues, the $130 resistance could soon break, opening the way to a new bullish sequence.

Long-Term Context

The year 2025 ends on a mixed note for Solana, which still records a 35% annual decline. However, this digital asset remains at 57% of its all-time high from January, set at $294.33. Long-term investors are now watching for signals of a potential rebound in 2026.

Key Takeaways

This type of reversal highlights liquidity issues and the volatility characteristic of crypto markets. Massive profit-taking, which has marked the year, could again sabotage the rise of SOL. However, if traders let gains run, Solana could surprise once more before the new year. Close monitoring of volumes, RSI, and technical resistance signals will be essential to anticipate Solana’s next movements.