Solana
(SOL)
buckled
Thursday
almost
6%
over
the
past
24
hours
to
$98
as
the
previous
weeks’
ecosystem
frenzy
and
Solana-based
meme
coin
rally
showed
signs
of
losing
steam.
With
the
latest
decline,
SOL
extended
its
pullback
to
over
20%
from
$125
on
Monday,
its
highest
price
since
April
2022,
CoinDesk
data
shows.
At
press
time,
SOL
pared
some
of
its
losses
and
was
changing
hands
at
slightly
above
$100.
Over
the
past
three
days,
some
$32
million
worth
of
leveraged
long
positions
–
bets
on
higher
prices
–
got
liquidated
as
trading
platforms
forcibly
closed
trades
due
to
insufficient
margin,
accelerating
the
pullback,
CoinGlass
data
shows.
Solana-based
meme
tokens
such
as
BONK
and
WIF,
which
saw
meteoric
rises
earlier
this
month,
are
down
over
50%
from
their
all-time
highs
recorded
in
December,
pointing
to
profit
taking
and
cooling
interest
in
participating
in
the
frenzy.
Amid
SOL’s
pullback,
the
BNB
Smart
Chain’s
native
token
(BNB)
rallied
9%
in
the
past
24
hours
and
took
back
the
fourth
spot
in
the
cryptocurrency
ranking
by
market
capitalization
from
solana.
Why
Solana’s
SOL
is
down
Solana
is
one
of
the
best-performing
crypto
assets
of
2023
rallying
900%
from
around
$10
in
early
January,
rejuvenating
its
ecosystem
after
being
one
of
the
most
beaten-down
assets
during
the
bear
market.
However,
the
token
was
due
for
a
short
term
pullback
as
the
rally
showed
signs
of
overheating
based
on
elevated
fund
rates
for
derivatives
positions,
David
Shuttleworth,
research
partner
at
Anagram,
said
in
an
interview
via
X
direct
messages.
Trading
data
suggests
traders
were
increasingly
moving
capital
out
of
SOL
to
stablecoins,
locking
in
profits
or
reducing
their
exposure
to
the
token,
Shuttleworth
added.
“There
was
a
quick
rebalancing
against
long
positions,
many
of
which
were
caught
out
of
position
and
overleveraged,”
Shuttleworth
told
CoinDesk.
