Solana (SOL) has recently experienced a notable surge in its price, reaching a peak of $68, a level not seen since May 2022. This impressive rally, marking a significant 30% increase in value over the past week, has garnered considerable attention within the cryptocurrency community. However, a cautious note has been sounded by an analyst who has raised concerns about potential bearish trends. Are Whale Movements and Exchange Inflows Indicative of an Upcoming Price Correction?
According to the keen observations of the crypto analyst there may be indications that Solana's current price trajectory is headed for a downturn. The analyst has identified the completion of an Elliott Wave pattern in SOL's price movement, suggesting the possibility of a retracement to the $49 level, aligning with the 38.2% Fibonacci retracement level.
Furthermore, recent activities involving large wallet holders of SOL have lent credibility to this bearish outlook. Notably, Lookonchain reported significant movements by whale accounts. One such account, "H4yiPh," was observed to have unstaked 2.16 million SOL tokens, valued at approximately $128 million, with a significant portion of these tokens finding their way to prominent exchanges like Binance and Kraken.
Another whale account followed suit by unstaking over half a million SOL tokens and similarly transferring them to these centralized exchanges. These deposits, totaling nearly $50 million, could potentially increase selling pressure on Solana, pushing its price downward.
SOL/USD Technical Analysis
Bearish momentum has dominated the Solana (SOL) market in the past 24 hours, causing prices to drop from an intraday high of $68 to an intraday low of $56.97, as reported by CoinStats. This decline in price suggests a shift in market sentiment toward selling pressure. Currently, SOL is trading at $58.89, representing a 13.89% decrease from its recent high.
During this downturn, SOL's 24-hour trading volume and market capitalization also decreased by 13.04% and 6.04%, respectively, reaching $3,910,472,665 and $24,894,185,723. This decline in trading volume and market capitalization may be attributed to the negative sentiment surrounding SOL, as investors may be hesitant to buy or hold the asset in the face of its declining price trajectory.
