Solana Price Prediction: SOL traders target $250 rebound as BTC, ETH lead $1.5B liquidations

Solana Price Analysis:

Solana price opened trading at $213 on December 11, having tumbled 15% during the crypto market crash on Monday. An in-depth analysis of SOL derivatives trading data shows the majority of investors are holding out for an early rebound, rather than exit within the current market conditions.

Having avoided a breakdown below $200, is SOL price on the verge of major bullish reversal?

Solana shows resilience amid $1.5B crypto market liquidations

The global crypto market descended into dramatic tailspin on Monday, as rising geopolitical risks triggered a $1.5 billion worth of liquidation on Monday. However, while top-ranked altcoins like Bitcoin (BTC) and Ethereum (ETH) fell below key support levels at $95,000 and $3,500 respectively, Solana bulls managed to defend the $200 territory.

As the risk factors abate, Solana price is now flashing signals of an early rebound.

The SOLUSD 12-hourly shows how Solana price has initially tumbled 15% as it fell from $237 to $203 during the crypto market crash on Monday. But having held firm at the $200 support, SOL price has now rebounded 8.23% within the last 12 hours, rising as high as $220 in the early hours of December 11.

Solana bulls deploy $237M leverage to fund rebound effort

After narrowly averting the $200 breakdown on Monday, Solana bull traders have rapidly sprung into action, deploying unusually-high leverage on existing LONG contracts, a move that could see them earn amplified profits as demand gradually returns to the crypto markets.

Affirming this stance, Coinglass’ Liquidation Map metric tracks the value of leverage LONG vs. SHORT positions currently deployed around the current SOL prices.

As Solana price advances towards $220 resistance on Wednesday, bulls appear to have overpowered SHORT traders over the last 24 hours. As seen above, Solana bulls have deployed $237 million worth of leverage on LONG positions, outpacing the $174.9 million leverage deployed on the corresponding SHORTs contracts by 26%.

When long leverage overtakes shorts during a market crash as observed above, it often signals that the bottom might be in. With the majority of active traders now speculating on the upside, Solana price now appears to be on the verge of pivoting towards a major bullish reversal.

If the bulls traders make rapid spot purchases, to support their highly-leveraged long-bets, the resulting surge in market demand and liquidity could potentially put the SOL price above the looming $220 resistance level.

Solana price forecast: Bull traders back in control if SOL closes above $230

After defending the $200 support amid the 8.6% correction on Monday, Solana price is attempting a recovery towards the $230 area, backed by increased leverage from bull traders, and positive technical signals.

Confirming the optimistic outlook, the Relative Strength Index (RSI) shows an upward reversal after initially plunging towards oversold conditions. More so, the Donchian Channels indicator also highlight $233 as a key resistance level, and a close above this threshold could signal the start of a renewed bullish trend.

Additionally, the Volume Delta flipping green indicates the ongoing rebound is support by strong spot demand and rising market liquidity. If SOL closes above the critical $233 resistance, a breakout towards new all time highs around $270 could be on the cards.

On the downside, key support levels to watch are around $203 and $180. But based on the current dominant LONG leverage positions, such a dramatic breakdown appears unlikely within the current market conditions.