Recently, the derivatives market for Solana (SOL) experienced a significant round of leverage liquidations, with a large number of long positions being forcibly closed in a critical price range, leading to a temporary cleansing of market sentiment. According to analyst CW's liquidations heatmap shared on the X platform, when the SOL price fell to around $82.8, it triggered a massive liquidation of long positions concentrated in the $80 to $83 range. This data covers major trading platforms such as Binance, Bybit, OKX, Aster, Hyperliquid, and Lighter, with the liquidation pressure most concentrated in the $80 to $81 area. As the price broke through this density zone, a chain reaction of liquidations quickly released the previously accumulated leverage long risks, significantly diluting the long liquidity below the current market.
Meanwhile, the heatmap indicates that there remains significant short liquidation pressure in the $90 to $97 range, suggesting that if the price rebounds, this area could form new support or resistance. This structure indicates that the market's downward momentum has largely been released in the short term, while greater potential reverse pressure has accumulated on the upside.
In the SOL/BTC trading pair, the price has retraced to the ascending trend line formed since mid-February after an unsuccessful attempt to sustain a breakout. According to analyst gnarleyquinn's analysis of the Coinbase daily chart shared on the X platform, this trading pair is forming a contracting oscillation pattern: with an ascending support line connecting multiple highs below, and a horizontal resistance level above that previously blocked the breakout. The prior upward attempt failed to effectively break through the red horizontal line, leading to a price pullback and a retest of the trend line support.
This trend line has repeatedly acted as support during pullbacks since February, indicating that buyers have actively absorbed each round of declines. The current price is oscillating within this narrowing range, with volatility continuing to compress, suggesting that the market is building energy for the next breakout. If the ascending trend line is maintained, the price may attempt to challenge the upper resistance area again; conversely, if it breaks below the trend line, it could trigger a new round of downward adjustments. This structure typically signals a consolidation phase before a breakout, with the future direction depending on the market's ability to hold key support.