Solana is confronting significant liquidation risks, with nearly 80% of its circulating supply currently at a loss, according to Glassnode data. Approximately 79.6% of Solana's supply, or around 478.5 million SOL, is underwater at a price of $126.9, suggesting a precarious market structure. Analysts caution that a price drop below $124.40 could trigger the liquidation of nearly $239 million in long positions. CEX.IO's lead analyst Illia Otychenko warns that further price declines could lead to a cascading sell-off. While some market participants believe that deep liquidations might reset the market structure and initiate a new accumulation phase, Otychenko points out that Solana-focused treasury firms are grappling with negative net asset values, potentially forcing them to sell assets and intensify bearish trends.