The recent surge in Solana’s price, which soared over 14% to reach $152 in just one week, led to more than $20 million in liquidations for short traders who had bet against the token. This rapid price movement occurred as the broader cryptocurrency market rebounded, particularly with Bitcoin breaching the $93,000 mark for the first time in seven weeks, culminating in over $600 million being wiped out from leveraged positions.
The rally in the cryptocurrency sector has been attributed to various factors, including positive macroeconomic indicators from Washington and dovish signals concerning tariffs, along with a significant shift in investor sentiment toward riskier assets.
On April 22, President Trump caught the markets off guard by indicating a possible easing of tariffs on Chinese imports, a move that could potentially diminish the ongoing trade war tensions. This sentiment was echoed by Treasury Secretary Scott Bessent, who deemed the existing tariffs as unsustainable.
These developments were perceived as favorable by investors, igniting robust responses in both traditional and crypto markets. Bitcoin’s 5% rise to $93,069 was accompanied by Ethereum’s impressive 12% gain to $1,768 and Solana’s notable increase to $149, which subsequently rose to $152. Total cryptocurrency market capitalization grew by 4%, exceeding the $3 trillion mark.
According to Coinglass, liquidations surged by 130%, while open interest climbed to $121.6 billion, indicating a renewed confidence and influx of leveraged bets within the market ecosystem. Despite these movements, the Altcoin Season Index remained at 16, suggesting that the market is still firmly in “Bitcoin Season.”
Furthermore, Bitcoin exchange-traded funds (ETFs) in the U.S. experienced their third consecutive day of inflows, reaching a daily peak of $936 million on April 22, marking the highest amount since Trump took office earlier in the year. Major stock indexes also participated in the upswing, with the S&P 500, Nasdaq, and Dow Jones all seeing gains exceeding 2.5%.
In a separate but interesting development, gold prices briefly spiked to $3,500, contributing to an overall risk-on atmosphere where cryptocurrencies responded swiftly to the favorable market conditions.
Solana’s Resilience Amid FTX Token Unlocks
Despite the cryptocurrency market witnessing substantial growth, Solana’s recent price surge is particularly noteworthy and somewhat unexpected. Typically, the unlocking of 11 million SOL tokens from the bankrupt FTX estate—valued at approximately $1.6 billion—would exert downward pressure due to an increase in circulating supply. However, this time, the scenario unfolded differently.
Analysts suggest that the potential impact of the unlock had been largely anticipated by the market. Matthew Nay, a research analyst at Messari, noted that Solana was previously oversold, with investors preparing for the event for an extended period. Rather than plummeting, SOL attracted renewed institutional interest, partly fueled by forthcoming protocol enhancements.
On-chain visibility revealed interesting activity as a significant crypto whale, who had staked SOL when priced at just $27 in 2021, recently unstaked 100,000 tokens valued at $13.9 million and deposited them on Binance. This particular wallet, which initially contained nearly a million SOL, now holds around 1.19 million SOL, valued at over $166 million, reflecting a remarkable profit of $153 million from a long-term staking strategy.
Earlier this month, other wallets unlocked $37 million worth of staked SOL that had appreciated to a total value of $206 million. Although $50 million worth was sold off promptly, Solana’s staked value surpassed Ethereum’s temporarily, reaching $53 billion. While Ethereum quickly reclaimed the top position, this shift marked a significant event in the ongoing contest between the two blockchain networks.
A Technical and Sentimental Shift in Solana and Ethereum’s Price Actions
Veteran trader Peter Brandt fueled enthusiasm around Solana with a tweet highlighting an emerging bullish “cup and handle” pattern on the SOLETH trading pair. Brandt indicated that this classical chart formation foreshadows a breakout that could see Solana significantly outperform Ethereum, with his price targets suggesting potential gains of over 100% against ETH.
The sentiment appeared to be corroborated by market movements. On April 21, Cathie Wood’s ARK Invest reported its first direct purchase of SOL, marking a strategic pivot from a previous focus on Ethereum and Bitcoin alone. Similarly, Galaxy Digital seems to be reallocating its assets, reportedly selling Ethereum while acquiring Solana. On-chain data revealed the firm deposited 65,600 ETH into Binance, equivalent to over $106 million, while withdrawing around 752,240 SOL valued at approximately $105 million.
This repositioning of assets across multiple wallets signals a targeted strategy. While Ethereum continues to dominate in total value locked (TVL) and developer activity, Solana’s recent momentum, bolstered by institutional interest, rising whale activity, and an overall shift in bullish sentiment, has led to its current ascent beyond the $152 threshold.
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