Solana (SOL) traders seem confident that the recent decline in the altcoin’s price is only a brief decline instead of a long-haul choppy period. This is evident from the position Solana longs has taken since the broader market liquidation, which ran into hundreds of thousands of dollars.

But do indicators agree with this sentiment? Here is a thorough analysis of the potential SOL price movement.

Solana Traders Confident in the Altcoin’s Recovery

According to Coinglass, the Solana Long/Short ratio is 1.14. As the name implies, the long/short ratio acts as a barometer of traders’ expectations in the market. When the ratio is below, it means there are more shorts than longs in the market.

A reading above 1, however, signifies more longs than shorts. For context, longs are traders with positions anticipating a price increase. Shorts, on the other hand, are traders expecting a decrease. 

Therefore, the current ratio indicates that Solana longs are dominant in the market. Hence, the average sentiment is bullish and, if validated, could turn profitable for these traders. Interestingly, this is happening at a time when the market faced the highest number of liquidations in the last few days.

Over the past 24 hours, SOL liquidations have totaled approximately $60 million. Of this amount, long positions accounted for over $57 million, while shorts made up the rest. Liquidations occur when a trader’s margin falls short, prompting the exchange to close the position to prevent further losses.

This wave of liquidations was triggered by Solana’s price dropping below $215, sparking a cascade of margin cal

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Author: Victor Olanrewaju