- The large exchange transfers caused SOL’s price to decrease to $143.86.
If SOL bounces, a sell wall at $160 could trigger another decline.
As an experienced analyst, I’ve seen my fair share of market fluctuations and large exchange transfers that have significantly impacted token prices. The recent whale transaction involving 179,999 SOL tokens to Binance is no exception.
As a researcher, I’ve uncovered an intriguing occurrence in the cryptocurrency market. On the 25th of April, a whale (an entity holding large amounts of cryptocurrency) transferred an amount equivalent to 179,999 Solana [SOL] tokens to Binance. Shortly following this transaction, the price of SOL dipped below its previous support level of $145.
Based on the analysis of Whale Alert, a blockchain transaction observer, the value of the transferred tokens amounted to approximately $26.14 million at the moment of the transaction. According to AMBCrypto’s investigation, such large-scale token movements typically indicate an intent to sell.
No way out yet depsite rising optimism
As a researcher observing the market, if selling pressure persists for Solana (SOL), the value of the token is bound to decrease significantly. This price decrease is a common occurrence for SOL and has been experienced before.
As a researcher examining Solana’s (SOL) recent market trends, I discovered that a significant number of major token holders have realized profits over the past month. Consequently, SOL’s value experienced a 24.03% decrease and was quoted at $143.86 during this period.
If there’s an uptick in cryptocurrency transfers to exchanges, the price could potentially drop even more. Conversely, a reduction in such transfers could help stabilize the value and possibly set the stage for a price rebound.
As of April 24th, the combined Funding Rate for SOL stood at a negative 0.0006%. This means that short positions were incurring regular fees to maintain their positions relative to long positions during that time.
As a crypto investor, I’ve noticed that the market’s shift towards the green zone may not tell the whole story. Although there has been an uptick in funding lately, the persistent downward trend in the token’s price could be indicative of bearish sentiments among investors.
This is because spot traders are aggressively selling, leaving perp buyers in disbelief. Should funding go higher while SOL dips, the value of the token might to slip below $140 over the next few days.
The current lows may serve as a rebound point, potentially improving the situation. Yet, from a technical standpoint, what indicators suggest this?
Bears are not done
Based on the SOL/USD 4-hour chart analysis, the Elder Force Index (EFI) has moved into the negative territory. This signifies that bears currently hold significant power in the market. Consequently, it could be difficult for Solana (SOL) to break free from the prevailing selling pressure.
As a market analyst observing the Relative Strength Index (RSI) of SOL, I noticed that the data indicated we were approaching the oversold territory with readings nearing the 30.00 mark. This potential signal suggests that a downward price trend for SOL may follow.
If the indicator falls beneath that level, there’s a possibility for the price to bounce back. Nevertheless, the Supertrend indicator has triggered a sell warning around $162.
As a Solana token holder, if I notice the price inching closer to a specific resistance level, I would be cautious and prepare for potential downside movement. A strong breakthrough above that resistance, however, could lead to a rebound and potentially push the value back up towards $175.
Read Solana’s [SOL] Price Prediction 2023-2024
However, that would take a substantial level of buying pressure which the token currently lacked.
Currently, the price of SOL may continue to fluctuate between approximately $137.66 and $147.57 until the overall market feeling shifts.
Read More
- Top gainers and losers
- DOP PREDICTION. DOP cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- KAI PREDICTION. KAI cryptocurrency
- SILLY PREDICTION. SILLY cryptocurrency
- STOG PREDICTION. STOG cryptocurrency
- AVAX PREDICTION. AVAX cryptocurrency
- PHB PREDICTION. PHB cryptocurrency
- CRPT PREDICTION. CRPT cryptocurrency
2024-04-26 22:15