Solana Price Prediction as Flash Crash Wiped Out $26 Million in Longs– Where Next After SOL Recovers 16% to $100?
Solana (SOL), the native cryptocurrency of the high layer-1 Solana blockchain protocol, has seen a massive 16% bounce from intra-day lows in the $85 area, and was last trading slightly back to the north of the psychologically important $100 level.
Despite the stunning recovery in the last few hours, the cryptocurrency is still trading around 5% lower on the day.
Rumours and speculation that the US SEC may delay the approval of spot Bitcoin ETFs this month fuelled a flash crash in the cryptocurrency earlier in the day.
The quick price drop saw leveraged long SOL positions in the futures market worth over $26 million wiped out on Wednesday, the biggest long liquidation event for at least three months, as per data presented by crypto derivatives data analytics website coinglass.com.
The anticipated approval of spot Bitcoin ETFs by the SEC, which would open the door to floods of institutional investment into the broader crypto market, has been a key theme driving the recent bull run seen across crypto.
Despite its brief tumble back below $100, SOL is still up more than 5x versus its September lows in the $17 area.
Another factor perhaps contributing to the broad crypto market downside on Wednesday could be headwinds coming from traditional asset markets – US stock prices have been falling this week, while US yields and the US Dollar Index (DXY) have been rising, as traders seemingly fret that they may have gone too far betting on Fed interest rate cuts towards the end of last year.
That being said, US ISM Manufacturing PMI data released on Wednesday was weak and indicated continued deflation, so rate-cut bets should remain robust ahead of Friday’s US jobs report.
Solana traders will continue to monitor the Bitcoin ETF situation and
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