The cryptocurrency market is witnessing a notable shift, with Solana (SOL) outperforming XRP amid a broader recovery. The surge has left short sellers reeling, with Solana leading the charge in liquidations over the past 24 hours.

Solana Dominates Liquidations

Short traders betting against Solana faced severe losses as the asset rebounded sharply. According to CoinGlass, SOL recorded $14.69 million in total liquidations, outpacing XRP by $5.22 million.

The liquidation data highlights a stark imbalance, with short traders losing $12.53 million, while long traders saw relatively modest losses of $2.16 million. SOL’s price surged by 4.85% to $124.34, bouncing back from a low of $117.62. If this momentum persists, analysts anticipate the coin could breach the $130 resistance level, fueling further optimism among investors.

Broader Market Recovery Hits Short Sellers

The recovery wasn’t limited to Solana. XRP short traders also felt the heat, recording $5.22 million in liquidations during the same period. Of this, $3.38 million came from short positions, while long traders incurred $1.84 million in losses.

The liquidations reflect a broader market rebound, which saw the total cryptocurrency market cap rise by 1.41% over the last 24 hours. This shift is attributed to changing market sentiment, as traders adjust to new developments, including the suspension of a trade tariff impacting the financial sector.

Investor Confidence Boosts Solana Trading Volume

Solana’s strong rebound has attracted risk-loving futures traders, betting on its potential for sustained growth. The coin’s trading volume surged, signalling growing investor confidence.

The focus now shifts to whether SOL can maintain this momentum. With increased optimism, the market is closely watching the $130 resistance level as a key indicator of further gains.

A New Chapter in Market Sentiment?

The recent market activity underscores the risks of short selling in volatile markets. As Solana and other altcoins recover, short sellers face mounting pressure. The shift in sentiment highlights the unpredictable nature of crypto trading, where rapid rebounds can significantly impact trader positions.

While the market shows signs of optimism, the road ahead depends on sustained price performance and broader economic factors. For now, Solana’s rally stands as a reminder of the ever-changing dynamics of the cryptocurrency market.