Solana drops 5% to $73 as traders shift capital to Ethereum

Solana's failure to hold $75 triggered $188 million in crypto long liquidations as capital rotated toward Ethereum.

Solana fell 5% from a July 27 high of $77 to $73 on July 28, breaking below the $75 pivot as long liquidations accelerated the sell-off across leveraged trading zones.

"Solana needs to break this local consolidation before we can start looking at the range high again," Daan Crypto Trades, a pseudonymous crypto trader, said. He added that Ethereum's recent strength against Bitcoin had left Solana behind, making the ETH ecosystem more attractive while SOL remained weak.

The decline swept through leveraged positions between $75 and $73, with CoinGlass data showing liquidation clusters concentrated near $72.40-$72.70 and $73.80-$74.20. Solana's 4-hour relative strength index fell to 35.57, below its signal average of 47.33, while the average directional index registered 11.54 — a reading below 20 indicating no confirmed trend.

The $75 level, which had supported earlier intraday rebounds, now flips to resistance. A failure to reclaim that pivot opens a path toward the descending channel's lower boundary near $70, while a recovery above $77-$78 would target the July high around $83.

Liquidations Amplify Solana's Slide

Over $250 million was liquidated across the cryptocurrency market in the last 24 hours, with $188 million in bullish long positions wiped out, according to Coinglass. Bitcoin's open interest fell 2.85% over the same period — a decline that, combined with falling prices, typically signals traders exiting long positions rather than new sellers entering.

Solana's three-day liquidation heatmap shows the token cut through several leveraged zones between $75 and $73. The largest liquidity concentrations now sit on both sides of the current price, with a bright band near $72.40-$72.70 and additional clusters near $73.80-$74.20. This positioning could keep short-term price action unstable, with a move below $73 potentially drawing SOL toward the lower liquidity pool.

Ethereum Outperforms as Capital Rotates

Ethereum reclaimed $1,900 on July 28 while Solana remained trapped below its July resistance range, reflecting a shift in trader preference. The rotation comes as Bitcoin traded at $64,953.64, down 1.51% over 24 hours, while Ethereum fell 3.13% to $1,871.30 — a smaller relative decline given SOL's 5% peak-to-trough drop.

The Federal Reserve's next policy decision adds uncertainty for risk assets. Treasury yields eased on July 28 while oil prices fell as markets responded to renewed hopes for diplomacy in the Middle East, with Brent trading below $87 and US crude near $81. That suggests Solana's decline is more closely tied to its technical breakdown and leveraged positioning than to a fresh macro shock.

This article is for informational purposes only and does not constitute investment advice.