On August 2, the cryptocurrency market faced a sharp drop in Solana’s price, attributed to sales by large investors known as whales. This event has caused concern among various investors.
Impact of Whale Sales on Long Positions
Whales, possessing significant market influence, offloaded around $17 million worth of Solana, exerting pressure on the asset's price. As a result, many long position holders incurred significant losses. A record $57 million in long positions has also been liquidated.
Changes in Technical Outlook
Technical analysis indicates a downward trend in Solana’s current price structure. Analysts predict a potential drop to $120 in the near future, driven by pressure from technical indicators.
Investor Recommendations
Investors are advised to exercise caution and take preventive measures against potential price declines. Analysts highlight the necessity of closely monitoring market dynamics and basing decisions on recent price movements.
The situation with Solana underscores the importance of monitoring the factors contributing to price declines, such as whale sales and long position liquidations. The future price movements will depend on the actions of large investors and prevailing market conditions.
