TL;DR
- Nearly 80% of Solana’s circulating supply is currently in a state of loss.
- A drop below $124.40 would trigger a massive $239 million liquidation of long positions.
- Despite the pressure, Solana Spot ETFs have accumulated $719 million in positive net flows.
The cryptocurrency market is being battered by a sustained sell-off, an event that has caused Solana and other altcoins to lose ground. In this context, Glassnode, an on-chain market intelligence platform, indicated that almost 80% of Solana’s circulating supply is now in the red. These figures highlight how “top-heavy the market structure had become before the recent contraction.”
This scenario puts Solana investors under pressure, with the latent threat of a massive panic-driven sell-off. According to Illia Otychenko, Lead Analyst at CEX.IO, investors looking to break even “may choose to exit if the price drops further,” which could trigger a rapid price decline due to a “major liquidation zone.”
For its part, CoinGlass reveals a key figure for short-term survival: if Solana drops below $124.40, approximately $239 million worth of long positions would be forced to close. At the time of writing, SOL is trading around $129.24, down 0.3% in the last 24 hours. Prediction markets, in fact, give only a 4% chance that Solana will reach a new all-time high by the end of the year.
Institutional Accumulation vs. Selling Pressure
The bearish pessimism is exacerbated by Solana-focused treasury companies themselves, whose average net asset value (mNAV) is significantly below 1.0, hovering around 0.6. An additional drop could “potentially pressure them to sell assets to cover costs,” strengthening the bearish narrative and instilling more fear in the market.
However, not all the outlook is negative. Experts like Lawrence Samantha, CEO of NOBI, view every large-scale liquidation event as a “cleansing of the market structure,” setting the stage for the next phase of accumulation. Samantha advises Solana investors under pressure to look at institutional accumulation in Solana exchange-traded funds (ETFs) rather than daily price action.
Since their introduction approximately a month ago, Solana Spot ETFs have not recorded a single net flow in the red. These funds have attracted around $719 million in net flow, a clear sign of long-term value. Analysts insist that the current price is not a disaster warranting panic, but a necessary stage. Although the market has not yet bottomed out, conditions are aligning for the reset of the next cycle, which will consolidate when volatility decreases and long-term buyers begin quiet accumulation.
