Solana Bleeds: $160 Support Crumbles as Realized Losses Pile Up – Time to Panic or Buy the Dip?

Solana's price teeters on the edge—realized losses hit hard as bears target $160. The 'Ethereum killer' narrative faces its toughest stress test yet.

Blood in the streets? Not so fast. Every crypto winter births opportunists—just ask the 'buy high, sell low' crowd now sweating their SOL bags.

Technical breakdown: The $160 level isn't just psychological. A close below could trigger algorithmic sell-offs, compounding pain for overleveraged degens.

Silver lining? Network activity remains robust. Developers aren't fleeing—yet. But as any trader knows, fundamentals rarely matter when margin calls start ringing.

Final thought: Wall Street would call this 'price discovery.' Crypto traders call it Monday. Either way, buckle up.

Key Takeaways

SOL is being deliberately dumped into a crowded long market to trigger liquidations. Is this a calculated reset, or just the start of deeper pain?

The market is closing the week with a striking red candle, snapping nearly a month of steady gains. The MOVE clearly signals aggressive deleveraging across the board.

Solana [SOL] hasn’t been spared. It’s on track to end the week down 15% from its $188 open, with price action now gravitating toward the key $160 level. For now, $160 is the name of the game.

And the stakes couldn’t be higher. SOL has dropped below a key realized price cluster, putting the average holder in the red. Could Binance’s sell-off now be the final trigger that deepens the bleed?

Leverage wiped as Binance funnels SOL to Wintermute

Binance is on a tear. It has offloaded nearly 110,000 SOL to Wintermute, and it doesn’t look like a routine shuffle. 

As flagged by AMBCrypto, when SOL was trading around $180, retail Open Interest was 91% net long, reflecting extreme retail leverage chasing a $200 breakout.

But the market flipped risk-off, triggering a cascade of long liquidations. In fact, on the 1st of August, solana registered $46 million in long liquidations, marking its largest single-day wipeout since Q1.

Source: Glassnode

Despite this, perp funding remains skewed. Binance’s 5-minute SOL perpetual data still shows 78% long dominance, pointing to continued directional crowding.

In this context, Binance’s 110k SOL offload appears highly tactical.

With Solana already down 15% on the week, the sell pressure likely drove price into thin liquidity, flushed out excess leverage, and primed the market for a cleaner reset ahead of potential reaccumulation.

 SOL dump pressures Solana’s key on-chain levels

The sell-off has dragged Solana into a critical support zone. However, with perp positioning still long-heavy and macro flows risk-off, the $160 level remains technically exposed.

Plus, with $17.9 million in long liquidations already cleared, this could just be phase one of a broader flush. Unless Open Interest resets or strong spot bids step in, Binance may keep leaning into the sell-side.

Solana’s URPD chart highlights a notable cluster of realized price density between $140 and $150, meaning a large amount of SOL was last moved (and therefore likely accumulated) in this range.

Source: Glassnode

A revisit of the $140-$150 realized price cluster could therefore act as a high-probability reaccumulation zone, particularly for entities like Binance.

Add to that: Solana’s Open interest remains compressed, funding is still skewed long, realized losses climbing, and broader positioning remains misaligned. 

All of which suggests a retest of this zone looks increasingly likely unless risk sentiment flips decisively bullish.