Solana Faces Critical Test at $70 Amid Liquidity Crunch

Solana's price has remained near $70 after major traders closed their long positions on Bitfinex, but analysts warn that weak demand and tightening liquidity raise the risk of a deeper decline.

The token absorbed a $16 million liquidation shock without producing a clear recovery, making another test crucial for separating real demand from a temporary pause. Long liquidations topped $16 million as August began, with short liquidations totaling about $187,000.

Buyers remained cautious, and analysts said the liquidation reset could create room for a rebound if spot demand returned, but muted exchange-traded fund flows showed that fresh buying remained limited.