Key Insights
The deliberate dumping of SOL into a crowded long market is causing liquidations. Is this a strategic reset or the beginning of more significant losses?
The market is ending the week with a significant red candle, breaking a month-long streak of steady gains. This movement clearly indicates aggressive deleveraging across the market.
Solana [SOL] is feeling the impact as well. It is set to finish the week down 15% from its opening price of $188, with prices now hovering around the critical $160 level. Currently, $160 is the key focus.
The stakes are high. SOL has fallen below an important realized price cluster, putting the average holder in a losing position. Could Binance’s recent sell-off be the catalyst for further losses?
Binance Offloads SOL to Wintermute, Wiping Out Leverage
Binance has been active, selling off nearly 110,000 SOL to Wintermute, and this doesn’t seem like a routine transaction.
As reported by AMBCrypto, when SOL was trading around $180, retail Open Interest was 91% net long, indicating extreme retail leverage chasing a $200 breakout.
However, the market sentiment shifted, leading to a wave of long liquidations. On August 1st, Solana saw $46 million in long liquidations, marking its most significant 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, indicating ongoing directional crowding.
In this context, Binance’s 110k SOL offload seems highly strategic.
The selling pressure on Solana, already down 15% for the week, likely pushed prices into low liquidity, cleared excess leverage, and prepared the market for a cleaner reset before potential reaccumulation.
SOL Dump Impacting Solana’s Key On-Chain Levels
The recent sell-off has brought Solana to a critical support area. However, with long-heavy perp positioning and risk-off macro trends, the $160 level remains vulnerable.
Moreover, with $17.9 million in long liquidations already executed, this could only be the first phase of a broader market cleanse. Unless Open Interest adjusts or strong spot buying emerges, Binance might continue to lean towards selling.
Solana’s URPD chart highlights a significant cluster of realized price density between $140 and $150, indicating a large amount of SOL was recently moved in this range, potentially accumulated.
Source: Glassnode
Revisiting the $140-$150 realized price cluster could serve as a probable reaccumulation zone, especially for entities like Binance.
Additionally, Solana’s Open Interest remains compressed, funding is still biased towards long positions, realized losses are increasing, and overall positioning is misaligned.
All signs point to a retest of this zone becoming more likely unless market sentiment turns decisively bullish.
sentence: Can you please pass the salt?
Could you kindly hand me the salt, please?