Solana’s Liquidation Trap: Why $175 Is the Price Level Every Trader Must Watch

Solana’s Open Interest hits $6.8B, highest since March, as futures traders bet on continued price upside.SOL’s TVL jumps 5% to $118B, signaling DeFi growth amid a 2.7% price pullback from $175.Solana (SOL) trades near $173, up 0.6% in 24 hours, as traders assess conflicting signals from derivatives, whale activity, and technical indicators. The asset’s Open Interest (OI) in futures contracts reached $6.8 billion, its highest since March, reflecting renewed speculative interest. Simultaneously, Solana’s decentralized finance (DeFi) total value locked (TVL) rose 5% in a day to $118 billion, signaling ecosystem growth.Futures and TVL Growth Underpin MomentumSolana’s OI surge coincided with a price climb to $175 before a 2.7% pullback. The rise in futures activity suggests traders anticipate further gains rather than hedging against losses.Source: CoinglassTVL growth, meanwhile, aligns with broader DeFi trends, indicating user engagement with Solana-based applications like lending and trading platforms.Sopurce: DeFiLlamaSolana’s Relative Strength Index (RSI) stands at 74, nearing overbought territory. While the Moving Average Convergence Divergence (MACD) remains bullish, the RSI suggests short-term cooling could precede another rally.Source: SOL/TradingviewKey Fibonacci levels at $163 (support) and $177 (resistance) may guide near-term price action. A break above $177 could test $185, while a dip below $163 risks deeper correction.Source: SOL/TradingviewWhale Activity and Liquidation RisksA whale transferred 132,573 SOL ($22.9 million) to Kraken, mirroring patterns seen in earlier large transactions. Such moves often precede volatility, though SOL’s price has so far absorbed the pressure. Liquidation heatmaps show concentrated long positions near $175, creating vulnerability to sudden price drops. Long liquidations totaled $3.33 million recently, exceeding short liquidations of $1.8 million, indicating skewed market exposure.Source: CoinGlassSocial media mentions of Solana have declined sharply since January, with Social Dominance dropping from 18.93% to 3.56%. However, positive funding rates (+0.013%) suggest traders still favor bullish positions.Source: SantimentHistorically, such conditions have aligned with upward price trends, though excessive leverage raises liquidation risks.SOL Rate OI – Source: CoinglassRising TVL and OI reflect optimism, but overbought signals and whale-driven liquidity shifts inject caution. The asset’s ability to hold above $163 or breach $177 will likely determine its trajectory in the coming weeks.Source: SOL/TradingviewSolana (SOL) is currently trading at $171.32, reflecting a -3.70% drop in the last 24 hours, despite delivering a strong +52.00% monthly gain and +16.76% weekly increase. On a longer time frame, Solana is still down -9.25% year-to-date and -22.96% over the past 6 months, but remains in recovery mode, sitting +323.09% above its all-time low. With a market cap of $88.99 billion and 24-hour trading volume at $4.67 billion, Solana remains one of the most actively traded and institutionally watched altcoins.Source: SOL/TradingviewFrom a technical standpoint, Solana is consolidating beneath a major resistance level near $175–$180, where past rejections have occurred. If SOL breaks above this zone with convincing volume, the next leg could extend toward $195–$210.Source: SOL/TradingviewKey support sits around $160–$155, where buyers have previously stepped in aggressively. The daily RSI is neutral, suggesting more upside potential remains if bulls regain control.The post Solana’s Liquidation Trap: Why $175 Is the Price Level Every Trader Must Watch appeared first on ETHNews.