Solana gained huge attention, surpassing the activity of dominant chains like Ethereum. Meanwhile, the rising dominance of memecoins raised some concerns, as a couple of rug pulls adversely impacted the SOL price rally. The selling pressure escalated heavily over the token, which prevented the bulls from reviving a notable rebound. The SOL price experienced a strong upswing, preventing the token from dropping below a pivotal support zone at $133.
Now the question arises: whether the latest rebound can be considered as a trend reversal or if it’s a trap laid for the bulls.
One of the major reasons for the recent upswing is said to be a huge whale activity. As per the update shared by LookonChian, whales withdrew a massive amount of SOL from a popular CEX, Binance, worth over $7.5 million.
With this, the SOL price quickly gained momentum as the market participants became hopeful of the next price action. The token surged above the psychological resistance at $145 but failed to clear the $150 range. Now, when the price is holding above the resistance-turned-support at $145, yet another whale activity occurred, which may circulate bearish clouds over the token.
Lookonchain shared another update wherein 5 whale accounts unstaked 5.52 million SOL worth $810 million in the past 12 hours. Among them, 3.54 million SOL was deposited into Coinbase Prime. With this, the possibility of a major selling pressure hovers over the token, as whenever the whales move such a huge amount of crypto to CEXs, it heavily alters the value of the token. So, what’s next for the SOL price rally?
Solana (SOL) Price Analysis
The Solana price witnessed a massive pullback in the past few weeks that dragged the levels by more than 57% from the highs. Meanwhile, the whale accumulation is seen to have changed the trajectory of the token. However, the growth trajectory does not appear to be strong enough, which suggests that the SOL price may undergo an extended consolidation between $138 and $145 for a while.
As seen in the above chart, the SOL price has triggered a rebound from the local lows close to $125. However, the upswing appears to be short-lived, as the bulls failed to push the price beyond the pivotal resistance but helped to keep up the trend above the pivotal support. On the other hand, the RSI displayed bearish divergence while the CMF failed to rise above 0, suggesting the bulls are holding significant strength regardless of the rebound. Being a little diverse, the MACD shows a drop in the selling volume while the levels are heading towards a bullish crossover.
Therefore, the Solana (SOL) price is believed to remain consolidated for a while, and if the MACD undergoes a bullish crossover, the price could experience a notable rise. Until then, the token may remain within an accumulation phase.
