Key Insights
- SOL price has displayed massive selling since the last week of January.
- Seven hours ago, a whale transferred to FalconX after offloading 1,366,028 SOL worth $198 million.
- The technical analysis suggests a rebound from the major support level of $120.
Solana (SOL) price has displayed a bullish move in a broader time frame. This bull run was interrupted near the previous resistance zone of $275. SOL price has witnessed massive selling pressure since the last week of January.
Since September, Solana price increased by supporting an ascending trendline. The price has recently failed to defend this trendline and dropped by 25% in a few days.
Solana Price May Drop Due to Increased Whale Activity.
A whale unstaked 1,366,028 SOL, valued at $198 Million, and transferred them to FalconX, causing heightened activity. Solana is one of the numerous altcoins that have allegedly been manipulated.
FalconX deposited 440,202 SOL, or $62.6 Million, into prominent exchanges like Binance and Coinbase shortly after receiving the funds. This indicated a possible liquidation or strategic realignment.
399,000 SOL, or $56.7 Million, was sent to Coinbase as the first significant deposit. This was followed by a 30,000 SOL transfer to Binance worth $4.27 Million.
Soon after, 10,200 SOL worth $1.45 Million were transferred to Binance. Other smaller transactions included the transfer of 1,000 SOLs to Coinbase and the deposit of two more SOLs. That was worth around $142,380 at press time.
Based on these movements, the whale may be getting ready to sell a sizable amount of its holdings. Moving ahead, this could put downward pressure on SOL price.
Solana price may drop if these transactions lead to a significant sell-off, particularly given the state of the market. On the other hand, rather than liquidating its assets, the whale may be redistributing them for strategic lending.
They may also opt to redistribute them for trading or other financial purposes. With such massive volumes streaming through exchanges, the market remains nervous and eagerly awaits the whale’s next move.
SOL Price Nearing Major Support: Could It Rebound Soon?
SOL crypto was trading at $140.71 when writing, which has escalated by around 1% in the past 24 hours. The market capitalization was $70.06 Billion, and the 24-hour trading volume was $5.29 Billion.
Solana price has remained bearish for the past few weeks and is nearing a major support zone of $120. The price has been defending this support level since April 2024. Here, buying pressure can be generated.
Suppose the price forms any bullish candlestick in the major support zone; buyers might be attracted. It could be a bullish signal if the price departs from this zone.
Suppose the trading volume supports this momentum; a bullish rally can be anticipated. Conversely, buyers might panic if the SOL price fails to defend this support zone.
Here, most traders and investors may prefer to book profits, which could cause selling pressure. Another key support level for Solana price could be $80. Buyers might join near this zone, which could reverse the trend.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
