- Price action suggests that SOL could easily reach the $195 level in the coming days.
- SOL’s liquidation data indicates that bulls are currently dominating the asset, meaning bets on the long side are significantly higher.
After having closely observed and analyzed the crypto market for several years, I must say that the current situation with Solana (SOL) seems quite intriguing. As a seasoned analyst, I’ve seen my fair share of whale movements and market fluctuations, but the recent accumulation of SOL by three significant players, totaling $35 million, is certainly noteworthy.
It seems like whales have become active again, given that Solana (SOL), one of the top five cryptocurrencies in terms of market capitalization, is approaching a significant price level of around $195, which could potentially trigger a breakout.
Whales bags $35 million of Solana
Last Tuesday, the blockchain tracking platform Lookonchain shared on their platform (formerly known as Twitter) that large investors (whales) amassed approximately 202,400 SOL, equivalent to around $35 million, over the last seven days.
Furthermore, these whales have invested their recently obtained Solana (SOL) tokens, indicating a positive outlook among traders regarding SOL as a future investment. As per the available information, these significant purchases of SOL were carried out by just three major investors.
According to Lookonchain’s analysis, the following significant transactions were made:
However, these notable withdrawals were made from the Binance and Kraken cryptocurrency exchanges.
Solana technical analysis and key levels
According to the information available, these substantial increases occurred after the retest of a bullish inverted head and shoulder pattern, which suggests a favorable perspective for Solana (SOL) investors.
As per AMBCrypto’s technical assessment, Solana (SOL) seems to be indicating a bullish trend and is nearing a significant resistance point at around $195. Given the recent market movements, it’s plausible that SOL may touch or even surpass this $195 mark in the near future.
In a nutshell, recent significant purchases of SOL and the overall positive vibe indicate that Solana could potentially return to its record high of $260 within the near future. At this moment, the 200 Exponential Moving Average points towards an upward trend.
Mixed on-chain metrics
Although there seems to be an optimistic viewpoint, the statistics from on-chain for Solana (SOL) suggest a blend of opinions. As per the data provided by Coinglass, an analytics firm specializing in crypto, the Long/Short ratio for SOL is 1.03 at present, which points towards a predominant bullish sentiment among traders.
On the other hand, a decrease of 7% in open interest indicates that some traders may be closing their short positions during the recent market surge, which could imply potential liquidation.
Currently, significant resistance points can be found at approximately $172.9 on the lower end and $178 on the higher end, as suggested by data from Coinglass. At these levels, traders appear to have taken on excessive leverage.
If Solana’s sentiment remains steady and its price increases to around $178, it would lead to the liquidation of roughly $16.7 million from short position holders. On the other hand, if the sentiment changes and the price falls to approximately $172.9, a significant amount of about $36.06 million in long positions could be liquidated.
The data on this liquidation suggests that at the moment, long positions (buyers) are more prevalent than short positions (sellers), indicating a stronger influence of the bulls in the market.
Currently, Solana (SOL) is being traded around $176.33, marking a slight increase of approximately 1.2% over the past day. This increase has also triggered a significant boost in trading activity, with volumes swelling by about 30%. This surge suggests increased interest from traders and investors, potentially including ‘whales’, during this timeframe.
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2024-10-29 03:04