Amid the current market volatility, Solana (SOL) seems to be facing a lack of bullish support and showing signs of weakness as the market downturn persists.
Whale Transfers $45.7 Million Worth of SOL to Binance
On January 10, 2024, Whale Alert, a blockchain-based transaction tracker, revealed that a crypto whale had transferred a substantial amount of 246,064 SOL, valued at $45.76 million, to Binance. This transfer indicates a potential sell-off and reflects the cautious sentiment among investors who are hesitant to hold long positions due to the continuous decline in SOL’s price over the past few days.
The data from Whale Alert highlights a price drop of more than 16% in SOL over this period, bringing the cryptocurrency to a critical support level.
Solana (SOL) Technical Analysis and Upcoming Levels
After experiencing a significant price decline in the last three days, SOL has reached a crucial support level at $178, which coincides with the 200 Exponential Moving Average (EMA) on the daily chart. This level represents a pivotal moment for SOL in the days ahead.
Expert technical analysis suggests that if SOL breaks below this support level and closes a daily candle below $175, it could potentially see a further decline of 11% to reach $156 or lower if bearish sentiment persists. However, if SOL manages to hold above the $178 level, a potential upside rally similar to previous patterns on the daily chart could occur.
Increased Whale Activity and Exchange Outflows
Apart from the significant whale transaction mentioned earlier, exchanges have reported outflows of over $60 million worth of SOL in the last 24 hours. When combined with the $45.7 million transfer to Binance, the market sentiment has seen a total dump of $60.7 million worth of SOL.
Current Price Momentum
At present, SOL is trading around $182, with a price decrease of over 7.95% in the past 24 hours. The trading volume has also dropped by 26%, indicating reduced participation from traders and investors compared to the previous day.
In conclusion, Solana (SOL) is facing a challenging period as it navigates through market uncertainties and bearish sentiment. Traders and investors are closely monitoring key support levels and whale activity to gauge the future direction of SOL’s price movement.