Solana: Realized losses mount amid $160 comes under threat – What now?

Key Takeaways

SOL is being intentionally dumped right into a crowded lengthy market to set off liquidations. Is that this a calculated reset, or simply the beginning of deeper ache?

The market is closing the week with a putting pink candle, snapping almost a month of regular beneficial properties. The transfer clearly indicators aggressive deleveraging throughout the board.

Solana [SOL] hasn’t been spared. It’s on monitor to finish the week down 15% from its $188 open, with worth motion now gravitating towards the important thing $160 degree. For now, $160 is the secret.

And the stakes couldn’t be greater. SOL has dropped beneath a key realized worth cluster, placing the typical holder within the pink. May Binance’s sell-off now be the ultimate set off that deepens the bleed?

Leverage wiped as Binance funnels SOL to Wintermute

Binance is on a tear. It has offloaded almost 110,000 SOL to Wintermute, and it doesn’t seem like a routine shuffle. 

As flagged by AMBCrypto, when SOL was buying and selling round $180, retail Open Curiosity was 91% web lengthy, reflecting excessive retail leverage chasing a $200 breakout.

However the market flipped risk-off, triggering a cascade of lengthy liquidations. In reality, on the first of August, Solana registered $46 million in lengthy liquidations, marking its largest single-day wipeout since Q1.

Supply: Glassnode

Regardless of this, perp funding stays skewed. Binance’s 5-minute SOL perpetual data nonetheless reveals 78% lengthy dominance, pointing to continued directional crowding.

On this context, Binance’s 110k SOL offload seems extremely tactical.

With Solana already down 15% on the week, the promote stress seemingly drove worth into skinny liquidity, flushed out extra leverage, and primed the marketplace for a cleaner reset forward of potential reaccumulation.

 SOL dump pressures Solana’s key on-chain ranges

The sell-off has dragged Solana right into a vital help zone. Nonetheless, with perp positioning nonetheless long-heavy and macro flows risk-off, the $160 degree stays technically uncovered.

Plus, with $17.9 million in lengthy liquidations already cleared, this might simply be phase one of a broader flush. Until Open Curiosity resets or sturdy spot bids step in, Binance could preserve leaning into the sell-side.

Solana’s URPD chart highlights a notable cluster of realized worth density between $140 and $150, that means a considerable amount of SOL was final moved (and due to this fact seemingly accrued) on this vary.

Supply: Glassnode

A revisit of the $140-$150 realized worth cluster may due to this fact act as a high-probability reaccumulation zone, notably for entities like Binance.

Add to that: Solana’s Open curiosity stays compressed, funding remains to be skewed lengthy, realized losses climbing, and broader positioning stays misaligned. 

All of which suggests a retest of this zone appears to be like more and more seemingly except threat sentiment flips decisively bullish.