Key takeaways
What happened to Solana during the market crash?
Solana plunged nearly 17% as $3.7 million in leveraged positions were wiped out during a $19 billion market-wide liquidation event.
Why did Solana’s price drop so sharply?
The drop was triggered by a major derivatives flush, as Open Interest plunged and funding rates turned negative, while traders rapidly closed their long positions.
Solana [SOL] was at the center of a historic market meltdown that wiped out over $19 billion in leveraged positions within 24 hours.
Source: CoinGlass
The altcoin plunged nearly 17% to trade around $184 as cascading liquidations swept through futures markets, erasing $3.7 million in SOL longs and triggering one of the largest derivatives flushes in crypto history.
Solana reels under intense sell pressure
SOL took a heavy beating during the latest market-wide correction, dropping over 16% in 24 hours as panic swept across crypto.
The hourly chart showed SOL struggling to find a footing near $185 after an extended downtrend. RSI plunged to 25 at press time – deep oversold territory. The CMF sat below -0.20, reflecting strong capital outflows.
Source: TradingView
Unless buying momentum returns soon, SOL could remain vulnerable to another dip before any recovery begins.
Leverage flush causes pain
Source: CoinGlass
The latest data shows how aggressively the derivatives market amplified Solana’s fall.
According to CoinGlass’ liquidation heatmap, SOL saw over $3.7 million in liquidations within just one hour, indicative of outsized exposure during the crash.
The numbers were second only to Ethereum’s [ETH] $4.2 million.
Source: X
The broader market wipeout was accompanied by a steep decline in Open Interest, which tumbled from around $3.86 billion to $3.85 billion; at press time, a mass exodus of leveraged traders.
Even more striking was that the Funding Rates nosedived to -0.27%, showing that short positions have begun to dominate as sentiment flips bearish.
Source: Coinalyze
There’s a derivatives-driven capitulation, where traders’ forced exits increased spot selling pressure. While such conditions often precede short-term relief rallies, the sustained negative funding rates are a sign of the caution that still rules the market.
For Solana, recovery will depend on whether buyers can absorb the remaining sell orders and restore confidence.
Unless market volatility cools, that would take a bit of time.