TL;DR:
- A major SOL holder liquidated 47,401 tokens following the Drift Protocol exploit, recording losses exceeding $4 million.
- The price of Solana fell 5.85% to settle at $79.26, invalidating psychological support after a bearish pennant breakdown.
- Despite the negative trend, 79.79% of top traders on Binance maintain long positions, raising the risk of massive liquidations.
A new wave of volatility has hit the crypto market after Solana broke the $80 support. The uncertainty generated by the Drift protocol exploit forced whales to abandon their positions, accelerating selling pressure in recent hours.
Technical indicators reflect significant deterioration; the Stochastic RSI has plummeted to a level of 9.03, entering oversold territory without clear signs of recovery. After having traded near $175 previously, the capitulation of institutional wallets has left the price testing $78.50 as immediate support.
Capitulation Risk and the $60 Target
Recent price action confirms the breakdown of a bearish pennant structure that had been forming near $80. Due to this technical move, buyers who entered near the $93.26 resistance are now trapped, creating overhead supply that hinders any attempt at an organic rebound in the short term.
On the other hand, the divergence between market sentiment and technical analysis is notable. While most traders maintain a bullish bias with a Long/Short ratio of 3.95, this saturated positioning increases vulnerability to a “liquidation cascade” if the price fails to hold.
If selling pressure persists and the $78.50 level fails to act as a bulkhead, the next liquidity target is situated at $60. The Solana ecosystem faces a critical test of resilience where fear of exploit contagion and technical weakness could deepen the current corrective cycle.
