Solana price rallying by 14% leads to highest single-day short liquidations in Q4

Solana price and a few other altcoins made a splash on December 21 after noting double-digit increases. This led to short traders witnessing considerable losses as their bearish bets failed. SOL traders are now looking at the highest short liquidations in the past three months as the altcoin inches closer to a key price point.

SOL bears have been liquidated

In the last 24 hours, Solana has noted the liquidation of about $12.64 million worth of shorts contracts. This is the highest single-day liquidation observed by the traders since October this year, as the bullishness before the year's end seems to be growing. 

This $12 million liquidation, in addition to the $7.6 million from Wednesday, brings the total 48-hour SOL liquidation to $20 million, suggesting that those looking for a price decline are the ones facing the most losses at the moment.

Solana short liquidations

Solana has been holding the spotlight since the beginning of this week after the “Ethereum killer” managed to surpass Ripple to become the fifth-largest cryptocurrency in the world. This led to a considerable rise in price as well.

Solana price hits 17-month high

Solana price, trading at $96 at the time of writing, noted a 14% increase in the span of just one day as bullish cues dominated the crypto market. Along with a host of other altcoins, SOL rallied as well, inching closer to hitting the $100 mark.

This price point was last touched back in May 2022, making it a key psychological support level. Reclaiming this support would translate to a bullish beginning to 2024. As is the Moving Average Convergence Divergence (MACD) indicator is exhibiting a bullish momentum picking up pace.

This would mean that breaching $100 would open Solana price up to a further rise, potentially even touching $113.

SOL/USD 1-day chart

However, a failed breach of $100 could result in SOL witnessing minor corrections before the year ends. This might drag the altcoin back down to $84, and losing this level would invalidate the bullish thesis, leaving Solana price vulnerable to a fall to $71.