We saw how Bitcoin reached $70k in under a year, but could we imagine what wonders the bear market does to crypto?
THE SOLANA CRISIS
Liquidation is considered to be something awful. In Solana’s case, the situation went at the speed of sound from bad to a White House Down-type of scenario. Turns out that 95% of the entire SOL pool involved a big marginal buy order.
Do you remember the Luna fall? Reportedly, it was caused by coordinated sale moves, which resulted in the price plummeting from $140 to $0.000006 in under a week. Back then the attackers used a POS vulnerability for money influx. This time the entire Solana’s value pool is being endangered, meaning, Solana is under heavy risk of a bear crash.
STOP THE TRANSACTION
A single anonymous wallet is responsible for holding 95% of the Solana value pool, as well as 88% of USDC borrowings. They used the money in order to open a margin buy, so the liquidation point should be somewhere under the current price. It is at the $22.30 level.
According to Solana’s community, every community member is now voting to stop this transaction. Moreover, the entire Solana blockchain halted external communications with exchanges at some point. Considering that almost 9/10 of Solana’s backup value is at risk of crashing down, it may be a wise move to protect both the funds and the investors.
MASSIVE BULL LIQUIDATION
Although technical indicators say otherwise, Solana can expect a bear move for 10 days straight without hiccups. This will lead to prices decreasing from the current $30 to $19. Any move below the $21.30 line should cause a massive bull liquidation, meaning anonymous wallets are obligated to buy Solana at this price. This will lead to further decline, but only if Solana does not exit the position.
Should we be worried? Well, if you invested in Solana, you might want to double-check your portfolio. You also might want to buy some Solana at a reasonable discount, considering that the bear market won’t be there for eternity.