Solana Flips XRP as Market Moves Against Short Sellers

As some altcoins experience price recovery in the cryptocurrency market, there have been huge liquidations with short traders experiencing losses. Solana ($SOL) traders who bet short on the asset have seen a relatively intense liquidation in the past 24 hours.

Short sellers crushed as Solana leads liquidations

According to CoinGlass data, $SOL has witnessed $14.69 million in total liquidations over the period, which is $5.22 million more than the volume recorded on $XRP.

The liquidation trend on Solana shows a massive imbalance as short position traders registered over five times more losses than long traders.

Investors who bet short on the price of $SOL lost $12.53 million following the coin's rebound, while long traders only lost $2.16 million.

According to CoinMarketCap data, $SOL's price has increased 4.85% to $124.34 as of this writing. Solana’s jump from a low of $117.62 is considered impressive, and market participants hope the momentum can be sustained. If the momentum is sustained, the price could breach the $130 resistance level.

The significant rebound resulted in the overexposure of short traders and the accompanying loss suffered. However, the figures also suggest that more risk-loving futures traders believe in $SOL's potential for the rally. This trend was showcased with a surge in trading volume from market participants.

Crypto rebounds as market sentiment shifts

Interestingly, the market rebound did not only impact Solana short traders but also other altcoins, including $XRP. In the same period, $XRP’s liquidation stood at $5.22 million.

Of this volume, long position traders lost $1.84 million, while those betting short on $XRP experienced losses of $3.38 million.

These general losses on the part of short-position traders might have been caused by bearish sentiments in the broader financial market.

The market's mood became gloomy as the impact of the now-suspended trade tariff hit the financial space.

The digital currency market is witnessing an uptick, with a combined market cap increase of 1.41% in the last 24 hours.