Solana (SOL) continues to be a hot topic among cryptocurrency enthusiasts, especially as the market experiences a price correction. While some investors are taking this opportunity to accumulate more SOL tokens, others are choosing to sell off their holdings.
One recent report that caught the attention of the crypto community was the revelation of a $23 million sell-off of Solana tokens. According to a post by whale transactions tracker Lookonchain on X (previously Twitter), the Solana-based meme coin generator, Pump Fun, sold a significant 99,999 SOL tokens worth $22.74 million. This sell-off took place on the Kraken cryptocurrency exchange and added to Pump Fun’s total earnings of over 1.487 million SOL tokens worth $345 million. The average selling price was $180.70 for 998,242 SOL tokens.
While this sell-off may not be considered excessive given the current market sentiment, it could still impact investors and whales, leading to further selling pressure and potential price declines in the near future.
In terms of technical analysis, SOL is currently hovering around a strong support level of $230. However, with significant selling pressure and the ongoing market correction, maintaining this support level has proven challenging. If SOL fails to hold at $230, there is a possibility of a 12% drop, potentially reaching the $200 level in the coming days.
Despite these challenges, SOL is trading above the 200 Exponential Moving Average (EMA) on a daily timeframe, indicating an overall uptrend. Additionally, the Relative Strength Index (RSI) is below 70 but currently stands at 57.30, suggesting a potential upside rally in the near future. The RSI is a key technical indicator used by traders and investors to make informed decisions.
As of now, SOL is trading near $230 and has experienced a slight price decline of 3.55% in the past 24 hours. However, trading volume has increased by 24%, indicating active participation from traders and investors during this period of price correction.
Overall, Solana remains a cryptocurrency to watch as it navigates through market fluctuations and investor sentiment.