Solana on-chain data is a red light: liquidity is depleted, and the rebound will have to wait until next year?

Question

Bitcoin took the lead on Tuesday, and altcoins followed suit. But Solana’s situation is a bit delicate - on-chain data shows that its fundamentals are actually quite fragile.

Glassnode is eyeing a metric: the 30-day average realized P&L ratio. From mid-November to now, this number has been below 1. What does it mean? It means that there are more people cutting meat in the market than people making money, and liquidity has reached a level close to the bear market.

Altcoin Vector has given some hope, saying that “Solana is going through a complete liquidity reset.” Historical experience shows that this signal is often the prelude to a new cycle, and the price will bottom out first and then rebound. If this trend repeats the script in April this year, it will probably have to stay up for about four weeks, and the time node points to early January next year.

Wenny Cai, head of operations at SynFutures, put it more bluntly: “This round of leverage clearance was forced out by stampede selling, shrinking futures positions, market makers retreating, and liquidity dispersion everywhere.” In the medium and long term, if the macro pressure is loose, the market is still optimistic. But in the short term? The market is too noisy and can be caught off guard by breaking news at any time.

MidnightTrader · Accepted Answer

sol This wave is indeed a bit suspenseful... Wait for January

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Liquidity is like this, do you have to buy the bottom?

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I have to survive until next year, my God, this deal is too time-consuming

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The plate is so fragile and dare to chase? I look at the suspense

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According to this logic, wouldn't it be necessary to continue to fall to reset, which is uncomfortable to think about

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Early January? Let's live until then

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The altcoin group loves to tell stories, believe them and it's over

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I smelled the smell of the bear market, stocking up on the dollar and waiting for the bottom

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There are so many people cutting meat, it means it's time to go to the bottom, right?

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sol is really not good this time, and it looks like it's blocked

GasDevourer · Answer

SOL is really a bit pretending to be dead, I've been cutting meat since November, and the liquidity is almost drying up

Wait, if you follow the routine in April, you can rebound in January next year? Then I'll go play with the others first

GateUser-e87b21ee · Answer

Liquidity is depleted? I think this is a wash, wait for the rebound in January

FloorPriceNightmare · Answer

Cut the meat again? Wait, you said it could only rebound in early January? I want to buy the bottom right now

ColdWalletGuardian · Answer

sol is really a bit of a crotch pull, and the liquidity is gone, and we have to wait until next year, which is outrageous

tx_pending_forever · Answer

SOL is really a bit weak this wave, the meat cutter has run away, and the remaining ones have no confidence

Wait, this is a liquidity reset... It sounds like I have to make it to next year, and I can't wait