Solana (SOL) hangs perilously close to falling to June 2022 levels after more than 3,000 traders lost about $16 million in short positions in the last 24 hours. Despite recovering from $87, Solana still risks falling below $30 if it loses the support level at $94.
$16 million wiped out in short positions in 24 hours
The crypto market has been merciless, wiping out more than $16 million of short position holders’ orders in just 24 hours. Around 3,100 traders saw their short positions liquidated as the market turned against them, with SOL prices recovering abruptly. The coin, which was trading at around $87, gained value by more than 6% and rose above $90, reaching a price of nearly $95.
However, just because the coin recovered from $87 does not mean that SOL is on safe ground. For instance, the broader price pattern shows that SOL is still at risk of falling to June 2022 levels, which is close to $30.
Historic data shows that when Solana lost this support level back in 2022, the prices were in a free fall until they reached $30. A reciprocation of this behavior might see the prices crash to these levels. However, to get a better idea about what is happening with the SOL prices at present, it is important to check the shorter time frame, like the 4-hour chart.
The 4-hour chart also does not paint a bullish picture, as the SOL price is trading inside a bear flag. Having touched the upper trendline of the bear flag, SOL is bound to rebound off it and reach the lower trendline, which is at $84.
The overall pattern shows SOL is bearish
Apart from the rebound to the lower trendline, the overall pattern, which is the bear flag, according to its name, is bound to produce a crash once the pattern is complete. However, as the pattern is still not complete, there is a high chance that the coin could rebound off of the upper and lower trendlines for quite some time before crashing below. As such, it is important that SOL holds onto the $94 price level.
