The end of the year looked gloomy for the crypto sector. However, Solana suddenly reverses the trend by thwarting bearish forecasts. An unprecedented liquidation imbalance is indeed propelling this crypto asset into the spotlight. Result: short positions collapse, while the market reacts to this unexpected shock.
In brief
- Solana traps short sellers with a record liquidation imbalance of 19,138%.
- A surprise rebound revives Solana despite a 35% annual decline in the crypto market.
Solana triggers a storm in the crypto market at the end of the year
In just one hour, over $300,000 in short positions were liquidated. A impressive imbalance of 19,138% was formed in the Solana market. Which revealed massive pressure on short sellers.
This rapid reversal comes as Solana remains above its moving averages. Its RSI is 44.39, i.e. far from the overbought zone. THE price of crypto asset SOL jumped from $123.50 to $126.57 before settling at $126.01. This represents an increase of 1.63%.
This movement also caused an increase in trading volume of 12.47%. The latter reached 3.13 billion dollars.
While the market still remains marked by a bearish climate, Solana therefore demonstrates strong resilience. If this bullish momentum continues, the resistance at $130 could soon give way. Which would open the way to a new bullish sequence.
Short Sellers Trapped by Unexpected Reversal
THE phenomenon observed on Solana illustrates a frequent dynamic in crypto trading: lightning reversals which take the most exposed positions by surprise. This time, short sellers were the big victims. Their strategy, based on fall in the price of crypto-assetsturned against them in brutal timing.
The year 2025 therefore ends on a mixed note for Solana, which still shows an annual decline of 35%. However, this digital asset remains at 57% of its historic peak of January, set at $294.33. Long-term investors are now watching for signs of a potential rebound in 2026.
The massive profit taking, which punctuated the year, could once again sabotage the rise in the SOL price. But if traders let the gains run, Solana could well surprise one last time before New Year's Eve.
In any case, this type of reversal sheds light on liquidity issues. It will be necessary to closely monitor the evolution of volumes, the RSI and technical resistance signals to anticipate Solana's next movements.
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