$SOL A $514,000 short position was liquidated during this bout of volatility in perpetual futures, with the price around 83.4661.
Let’s use this figure to talk about liquidations.
The liquidation of a large number of long positions increases selling pressure, while a wave of short liquidations increases buying pressure. This is why cascading liquidations intensify market movements.
Concentrated liquidations indicate that leverage on that side has been flushed out. Some believe volatility may temporarily ease afterward, but this is not a rule.
Unusual readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position rather than make a big bet.
Let’s use this figure to talk about liquidations.
The liquidation of a large number of long positions increases selling pressure, while a wave of short liquidations increases buying pressure. This is why cascading liquidations intensify market movements.
Concentrated liquidations indicate that leverage on that side has been flushed out. Some believe volatility may temporarily ease afterward, but this is not a rule.
Unusual readings are usually accompanied by greater volatility. At times like these, it’s better to reduce your position rather than make a big bet.
