Solana Liquidity Crisis: What You Need to Know.

Solana's on-chain metrics are signaling a warning as the Realized Profit/Loss Ratio has dropped into the loss zone, indicating liquidity is decreasing similarly to bear market conditions. After a strong price surge in September peaking in October, SOL investors have shifted from taking profits to accepting losses in November.

Looking at recent price movements, SOL briefly reached $144 before dropping to around $131, with the 4-hour chart showing increasing volatility and selling pressure. Trading volume surged during the decline, indicating rising investor anxiety.

This model resembles the bear market of 2022 when SOL maintained low liquidity conditions for several months before finding a bottom. The important question now is whether this is a temporary decline or a long-term trend.

For those holding SOL, this may be a time to reassess positions while monitoring liquidity indicators for potential reversal signals.

The content is for reference and discussion only, not investment advice.

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