Will Weal’s $45.7 Million Solana (SOL) Issue a Sell Signal?
Amid the ongoing market uncertainty, Solana (SOL) appears to be losing bullish support and weakening as the market continues to decline.
Well will transfer $45.7 million of SOL to Binance
On January 10, 2024, blockchain-based transaction tracker Whale Alert on X (formerly Twitter) transferred 246,064 SOL worth $45.76 million to Binance, a crypto whale.
The data from Whale Alert indicates a sell-off opportunity and reflects investor sentiment as they seem reluctant to go long or hold positions due to the three-day streak of declines. According to the data, SOL experienced a price decline of more than 16% during this period and has now reached a critical support level.
Solana (SOL) technical analysis and upcoming levels
Following a significant price decline over the past three days, SOL has reached a critical support level at $178, which corresponds to the 200 Exponential Moving Average (EMA) of the daily time frame. This stage looks like a dry or break situation for SOL in the coming days.
According to expert technical analysis, if SOL breaks this support level and closes the daily candle below the $175 mark, it may decline by 11% to reach $156, or lower if the bearish sentiment continues. On the contrary, if the sentiment changes and SOL manages to hold above the $178 level, a rally similar to the one previously seen on the daily chart may occur.
Increase in whaling activity and change in foreign flows
However, this bear sighting didn't just affect one whale. In the past 24 hours, aside from this whale of a deal, the exchange has seen more than $60 million worth of SOL. Combined with the $45.7 million transfer, this market sentiment saw another $60.7 million SOL dump.
Current price momentum
Currently, SOL is trading near $182, having gained more than 7.95% in price in the last 24 hours. At the same time, the trading volume decreased by 26 percent, indicating that the participation of traders and investors is low compared to the previous day.
