Solana Plunges as Long-Term Holders Dump Holdings, Futures Hit 97% Liquidation Rate

Solana's foundation shakes as veteran investors bolt for the exits.

The Great Unloading

Long-term holders trigger massive sell-offs, flooding the market with supply. These aren't weak hands—they're the bedrock investors who believed in Solana's infrastructure promise. Their departure signals deeper structural concerns than typical market volatility.

Futures Carnage

Derivatives markets bleed with 97% liquidation rates—one of the highest wipeout percentages in crypto history. Leveraged positions evaporate faster than meme coin hype. Trading desks report margin calls hitting like dominoes across exchanges.

Ecosystem Fallout

Validators face revenue pressure as transaction volumes contract. NFT marketplaces see floor prices collapsing—digital art collections turning into digital yard sales. DeFi protocols scramble to manage liquidity crunches as TVL metrics flash red.

The smart money's exit strategy looks brutally efficient—leaving retail bag-holders wondering if they should've diversified beyond influencer recommendations. Sometimes the most bullish signal is watching who gets off the ride first.

What to Know:

• Solana's Liveliness metric reached a 30-day high on September 21, indicating increased movement of previously dormant tokens held by long-term investors
• Long liquidations dominated Solana's futures market yesterday, accounting for 97% of all positions wiped out and reaching a year-to-date high
• The cryptocurrency faces potential decline toward $195.55 if selling pressure continues, though renewed demand could drive prices to $248.50

Veteran Investors Signal Weakening Confidence

Blockchain analytics firm Glassnode reports Solana's Liveliness metric climbed steadily over recent weeks. This measurement tracks the ratio of coin days destroyed to total coin days accumulated, providing insight into whether long-term holders are retaining or disposing of their assets.

The metric's rise to a 30-day peak suggests previously dormant tokens are moving. When Liveliness increases, it typically indicates long-held coins are being transferred or sold, reflecting profit-taking behavior among established investors.

Solana's Hodler Net Position Change has remained negative since August 27, according to Glassnode data.

This metric measures whether long-term holders are expanding or reducing their exposure over specific periods. Positive readings indicate coins moving into hodler wallets, while negative values signal distribution rather than accumulation.

The persistent negative trend shows investors who traditionally provide market stability are reducing their holdings. This pattern adds to broader selling pressure affecting the cryptocurrency's performance.

Futures Market Faces Historic Liquidation Wave

Yesterday's trading session saw long liquidations in Solana futures reach unprecedented levels for 2024. The surge accounted for 97% of all positions eliminated in the coin's derivatives market, highlighting the extent of bearish sentiment among Leveraged traders.

These liquidations typically damage confidence among participants who had positioned for upward price movement. The scale of long position closures suggests many traders were caught off-guard by Solana's price decline.

Market analysts note such liquidation events can create cascading effects.

As positions get forced closed, additional selling pressure emerges, potentially driving prices lower and triggering more liquidations in a self-reinforcing cycle. The futures market distress reflects broader challenges facing Solana amid cryptocurrency market uncertainty. Traders who had maintained bullish positions found themselves facing significant losses as the token's value dropped below key support levels.

Liveliness measures token movement patterns by comparing destroyed coin days to accumulated coin days. Coin days represent the time tokens remain stationary in wallet addresses, with longer periods indicating stronger holding conviction. Long liquidations occur when traders using borrowed funds to bet on price increases face margin calls.

When prices fall instead of rising, exchanges automatically close these positions to prevent further losses, creating additional selling pressure.

Hodler Net Position Change tracks whether long-term investors are increasing or decreasing their cryptocurrency holdings. The metric helps identify distribution patterns among committed holders who typically provide market stability during volatile periods.

Price Outlook Hinges on Demand Recovery

Technical analysis suggests solana could test the $200 level again if current selling pressure persists. The cryptocurrency faces potential decline toward $195.55 as long-term holder distribution combines with futures market liquidations.

However, renewed buying interest could alter this trajectory. If demand emerges to absorb the increased supply from long-term holder sales, SOL's price might reverse course and advance toward $248.50. The cryptocurrency's near-term direction depends largely on whether new buyers step in to replace exiting long-term holders. Market participants will watch for signs of demand recovery that could stabilize prices above current levels.

Final Thoughts

Solana confronts significant headwinds as long-term holders reduce positions while futures liquidations reach annual highs. The combination of veteran investor distribution and leveraged position closures creates challenging conditions for price recovery in the NEAR term.