Solana (SOL) is gaining attention from derivatives traders as liquidity data indicates an important concentration of short positions between the $90 and $105 price range. The cluster, recognised through liquidation heatmap analysis, underlines an area where exploited positions could be vulnerable if the upward rally grows.
According to the data provided by CoinMarketCap, at the time of writing, the coin is trading at $84.55 with a 3.07% decrease in rate. The market cap of the token has exceeded $48 billion, and the volume of the asset is around $3.92 billion.
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Latest market data suggests a packed band of liquidity positioned above SOL’s present trading range, especially between $90 and $105. Liquidity heatmaps, which envision areas of concentrated leveraged positions, propose that a crucial number of short positions have been collected within this zone.
Such clusters often suggest price levels where stop-loss orders and liquidation triggers are concentrated. If price increases into this range with needed momentum, short positions could face forced closures, possibly accelerating price action.
The metrics indicate positioning in perpetual futures and other leveraged instruments rather than spot market activity.
SOL recently saw a pullback before steadying below the identified liquidity band. The price formation shows a gradual try at a comeback, though it remains beneath the $90 threshold at the time of observation.
The liquidity concentration indicates that investors entered short positions during the latest decrease, expecting further decline. These positions now sit above current price levels, making a potential squeeze scenario if price breaks higher.
When exploited short positions are liquidated, traders are pressured to buy back the coin to close their positions. This buying movement can increase upward price action in a short period of time, producing what is commonly called a short squeeze.
Liquidity heatmaps do not ensure price action but identify areas where volatility may increase if triggered. The concentration of short positions in this range underlines a potential volatility pocket, with traders and analysts keenly observing for signs of a breakout or continued consolidation.
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