SOL liquidity indicators fell below key levels, early January or a turnaround?

Bitcoin’s recent rally has indeed led to a vote of mainstream coins to follow suit, but the situation for SOL does not look so optimistic.

Glassnode recently set its sights on a metric – Solana’s 30-day average realized P&L ratio, which has been hovering below 1 since mid-November. What does this mean? To put it simply, there are more people in the market who lose money and leave the market than who make money, and the liquidity has reached a level close to the bear market.

However, Altcoin Vector gave some hope: “SOL is going through a round of complete liquidity reshuffle, which used to often indicate that a new cycle is coming.” They dug out historical data to compare, if this trend replicates the wave of operations in April, it will probably take about four weeks to see a turnaround, and the timeline may be delayed until early January next year.

Wenny Cai, head of operations at SynFutures, explained in more detail: This round of deleveraging is a combination of multiple factors - losing orders, shrinking futures positions, market makers retreating, and the liquidity of various trading pools being broken up. Her judgment is that if the pressure at the macro level can be eased, it is still optimistic in the medium and long term, but there is too much market noise in the short term, and it may be smashed by sudden news at any time.