Solana Triggers a Record Liquidation and Surprises the Crypto Market

The end of the year was shaping up to be bleak for the crypto sector. However, Solana suddenly reverses the trend by thwarting bearish forecasts. An unprecedented liquidation imbalance indeed propels this crypto asset into the spotlight. The result: short positions collapse while the market reacts to this unexpected shock.

Solana triggers a storm on the crypto market at year-end

In just one hour, more than $300,000 of short positions were liquidated. An impressive imbalance of 19,138% formed on the Solana market, revealing massive pressure on short sellers.

This rapid turnaround comes while Solana remains above its moving averages. Its RSI is 44.39, far from the overbought zone. The price of the crypto asset SOL jumped from $123.50 to $126.57 before stabilizing at $126.01. This represents an increase of 1.63%.

This movement also caused a 12.47% increase in trading volume, which reached $3.13 billion.

While the market still remains marked by a bearish climate, Solana therefore demonstrates strong resilience. If this bullish momentum continues, the $130 resistance could soon break. This would open the way to a new bullish sequence.

Short sellers trapped by an unexpected reversal

The phenomenon observed on Solana illustrates a frequent dynamic in crypto trading: lightning reversals that take the most exposed positions by surprise. This time, the short sellers were the big victims. Their strategy, based on the drop in crypto asset prices, backfired against them in a brutal timing.

The year 2025 thus ends on a mixed note for Solana, which still records a 35% annual decline. However, this digital asset remains at 57% of its all-time high from January, set at $294.33. Long-term investors are now watching for signals of a potential rebound in 2026.

Massive profit-taking, which has marked the year, could again sabotage the rise of the SOL price. But if traders let the gains run, Solana could well surprise one last time before the New Year’s Eve.

In any case, this type of reversal highlights liquidity issues. We will need to closely monitor the evolution of volumes, RSI, and technical resistance signals to anticipate Solana’s next movements.