- Solana traders and investors have lost over $65 million in the last 24 hours.
Expert says that Solana (SOL) is not falling naturally but is being pushed down by whales.
As a seasoned crypto investor with a few battle scars to show for it, I must admit that the recent events surrounding Solana (SOL) have left me more than a bit skeptical. The $65 million loss in just 24 hours is a stark reminder of the volatile nature of this market, and the fact that whales might be manipulating SOL’s price isn’t exactly comforting.
In the past day, I’ve witnessed a staggering 16% drop in the value of my crypto investments, primarily due to escalating global political uncertainties and the latest interest rate adjustments announced by Japan. It’s a challenging time for us crypto enthusiasts as we navigate through these volatile market conditions.
As a researcher studying the crypto market, I’ve observed an alarming event with Solana (SOL), currently the world’s fifth-largest cryptocurrency by market cap. Yesterday, SOL experienced a significant breakdown of its crucial support level at $121, leading to a steep 20% price decline within a 24-hour period. This drop is a notable one and demands closer attention from investors and enthusiasts alike.
Solana’s major breakdown
After a significant price decrease and collapse, Solana (SOL) was being traded around $113 at the current news update. Interestingly, its trading activity has dramatically increased by approximately 245% within the past day.
This surge in the trading volume suggests higher participation from investors and traders.
In the face of a significant drop in Solana’s price, a previous investor from Coinbase recently shared a post, originally on Twitter, suggesting that the fall of Solana might not be a natural occurrence but rather an orchestrated one by large investors, often referred to as “whales.”
Additionally, he pointed out that the whales might be forcing small investors (noobs) to sell their holdings by artificially reducing the price of SOL. This action would then give the whales an opportunity to repurchase at a reduced price.
Additionally, he added,
“They are stealing your bags and will make you buy back at a higher price.”
Over the past day, approximately $65 million worth of Solana positions – both long (buy) and short (sell) – have been closed. Out of this total, around $47.16 million was withdrawn from long positions, while nearly $18.28 million was removed from short positions.
Solana price prediction and upcoming level
Based on professional assessment through technical study, Solana (SOL) appears highly pessimistic and has been transacting under its 200 Daily Exponential Moving Average (EMA).
In addition, it has undergone a significant collapse of key support points. Yet, the closing of each day’s candle will play a vital role in deciding if its downward trend will persist or if a turnaround might occur.
If SOL ends its daily session beneath the $122 mark, it’s likely that it might decrease by approximately 30%, potentially dropping to around $77 in the upcoming days.
As a crypto investor, I’m keeping a close eye on Solana (SOL). If it manages to finish the day with a candlestick above the $122 mark, there’s a strong possibility of a potential price surge towards $155 in the near future.
Regardless of current Solana price predictions, the RSI technical indicator suggests that the price has fallen too much, possibly indicating an upcoming price increase or reversal.
On the other hand, a decrease of 26% in the open interest of the SOL indicates that investors are showing less enthusiasm for this market downturn.
Realistic or not, here’s SOL’s market cap in BTC’s terms
SOL’s upcoming liquidation level
Currently, there are two significant support and resistance levels identified by CoinGlass’s on-chain analysis. The lower level is at $100, while the higher one stands at $130.
If the market keeps declining and hits $100, approximately $40.5 million worth of long investments will need to be sold off. On the flip side, if the sentiment improves and SOL goes up to $130, around $140 million in short investments could be forced to close.
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2024-08-06 04:07