SOL's Trigger Price Movement Could Unleash $400M Liquidation Wave in Leveraged Market

AirdropCollector · 2026-01-05T14:37:21+00:00

The Solana (SOL) derivatives market faces risks, as a 10% price swing could lead to over $400 million in liquidations due to high leverage. Minimal movements may trigger mass forced closures, highlighting the market's fragility.

AirdropCollector

2026-01-05 14:37:21

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Solana (SOL) is currently trading at $133.65, and recent liquidation analysis reveals a precarious balance in the derivatives market. According to insights from Coin Bureau, minimal price movements could trigger substantial forced closures across leveraged positions.

The risk breakdown is striking: should SOL climb by just 10% from current levels, approximately $217 million in short positions would face liquidation, meaning traders betting against the token could be wiped out. Conversely, if the token declines 10%, roughly $183 million worth of long positions betting on price increases stand at liquidation risk.

This vulnerability stems from the extremely high concentration of leveraged bets in the Solana derivatives ecosystem. With such density of positions stacked at nearby price levels, even modest directional moves can cascade into forced liquidations as margin calls trigger across multiple traders simultaneously.

The $400 million combined liquidation threshold demonstrates how fragile the current market structure is around Solana. Traders operating with high leverage are essentially perched on a knife’s edge, where a routine 10% swing—entirely normal in cryptocurrency volatility—could translate into mass position closures and significant losses for those caught on the wrong side of the move.

SOL-2,44%

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