Amid ongoing market uncertainty, Solana (SOL) appears to be losing bullish support and causing market concerns.
Whale Transfers $45.7 Million Worth of SOL to Binance
On January 10, 2024, the blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a crypto whale transferred 246,064 SOL, worth $45.76 million, to Binance. This data from Whale Alert suggests a potential sell-off and reflects investor sentiment, as they seem unwilling to go long or hold positions amidst a 16% price drop over the past three days.
Solana (SOL) Technical Analysis and Upcoming Levels
Following its significant price decline over the past three days, SOL has reached a crucial support level at $178, aligning with the 200 Exponential Moving Average (EMA) on the daily timeframe. If SOL breaches this support level and closes a daily candle below the $175 mark, it could potentially decline by 11% to $156. Conversely, if sentiment shifts and SOL holds above the $178 level, a similar upside rally might occur.
Increased Whale Activity and Exchange Outflows
This bearish outlook is not limited to one whale. In the past 24 hours, aside from this whale's transaction, exchanges have witnessed an outflow of over $60 million worth of SOL. Combined with the $45.7 million transfer, this contributed to a market dump of $60.7 million worth of SOL.
Currently, SOL is trading near $182, experiencing a 7.95% price decline in the past 24 hours. Trading volume also dropped by 26%, indicating reduced participation from traders and investors.
