Solana (SOL) has recently faced some difficulty after facing a $107 million liquidation threat. A whale deposited 5.7 million SOL and borrowed 108 million USDC and USDT. This accounts for a very huge chunk of borrowing on Solana and could cause chaos on the network.
Unfortunately, Solana’s solution to the problem was to take control of the whale to liquidate its position. The decision did not sit well with investors as it pouches aside the very foundation of what the word “decentralized” means.
As a result, speculators currently have a very negative outlook on SOL and traders are now shorting SOL, which only adds to the negative sentiment surrounding the crypto at the moment.
This could, however, present a decent trading opportunity.
Solana Perpetual Futures 1D (Source: FXStreet).
When looking at the daily chart, things for SOL are looking relatively good as the price of Solana was able to overcome the descending trendline that has been visible throughout the last month.
This means that SOL is now testing the $37.43 resistance level. If SOL can break through this level, the crypto may move on to test the $47.43 level.
According to CoinMarketCap. SOL is currently trading at $36.45 after a 6.66% increase in price over the last 24 hours and after reaching a high of $36.70 over the same period.
Over the last day, SOL’s trading volume fell 8.61% and is currently standing at $1,462,582,394.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.