Amid the ongoing market uncertainty, Solana (SOL) appears to be losing bullish support and weakening as the market downturn continues.
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 a significant 246,064 SOL, worth $45.76 million, to Binance.
This data from Whale Alert indicates a potential sell-off and reflects investor sentiment, as they appear unwilling to go long or hold positions due to the continuous price decline over the past three days. According to the data, SOL has experienced a price drop of over 16% during this period and has now reached a crucial support level.
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, which aligns with the 200 Exponential Moving Average (EMA) on the daily timeframe. This level appears to be a make-or-break situation for SOL in the coming days.
According to expert technical analysis, if SOL breaches this support level and closes a daily candle below the $175 mark, it could potentially decline by 11% to reach $156, or even lower if the bearish sentiment persists. Conversely, if sentiment shifts and SOL manages to hold above the $178 level, a similar upside rally to what was previously observed on the daily chart may occur.
Increased Whale Activity and Exchange Outflows
However, this bearish outlook has not impacted just 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 market sentiment has witnessed another dump of $60.7 million worth of SOL.
Current Price Momentum
Currently, SOL is trading near $182, having experienced a price decline of over 7.95% in the past 24 hours. During the same period, its trading volume dropped by 26%, indicating lower participation from traders and investors compared to the previous day.
