Solana [SOL], the cryptocurrency ranked as the fourth largest by market capitalization globally, is currently in a phase of consolidation within a narrow range, marked by the formation of a bearish price pattern.
Meanwhile, alternative digital assets such as Ethereum [ETH] and Ripple [XRP] are exhibiting significant bullish momentum. This has sparked concerns among SOL investors about the sustainability of its current position.
Recent data from CoinMarketCap shows that despite Solana’s sideways movement in the last two weeks, its market capitalization has held steady at $114.4 billion. In contrast, XRP has witnessed an impressive 80% surge during the same period, pushing its market cap to $106.5 billion.
Notable Involvement of Large Players
Insights from the on-chain analytics platform Coinglass reveal that even as the price of SOL remains within a consolidation range, long-term holders are displaying a strong interest in the cryptocurrency.
Based on Coinglass’s SOL Spot Inflow/Outflow indicators, it is evident that there have been substantial outflows of $182.5 million from exchanges for SOL since November 23, 2024. This significant movement indicates that whales and long-term holders have been transferring these tokens out of exchanges to their personal wallets, hinting at accumulation.
Within the crypto community, withdrawals from exchanges are often interpreted positively as a signal of a potential buying opportunity and an upcoming uptrend.
Recent Trading Activity Insights
In addition to the interest shown by long-term holders, traders have also demonstrated considerable confidence and engagement with SOL, as highlighted by Coinglass. The current Binance SOLUSDT Long/Short ratio at 2.77 underscores a prevailing bullish sentiment among traders.
Presently, 73.5% of the top Binance traders have taken long positions, with the remaining 26.5% holding short positions.
The combination of these on-chain indicators alongside technical analysis points towards bullish dominance over the asset at the moment, indicating an attempt to secure SOL’s position as the fourth largest cryptocurrency.
Analyzing Solana’s Technical Outlook and Key Levels
Technical analysis from CryptoCrypto’s perspective suggests that Solana is potentially forming a bearish head-and-shoulder pattern on the four-hour chart. This pattern is not yet complete as the second shoulder is still in the process of formation.
If SOL successfully executes this pattern and breaches the neckline around $230, there is a possibility of a decline towards the $200 level.
Conversely, if SOL manages to close four consecutive candles above the $245 mark, the bearish scenario could be averted, paving the way for a new peak.
On a positive note, Solana’s Relative Strength Index (RSI) presents an opportunity for an upward trend in the near future. With an RSI reading of 51, indicating a position below the overbought threshold, there is potential for further growth.
At the latest update, SOL was trading close to $242 and had witnessed a slight decline of over 1.25% in the past 24 hours.
During the same period, trading volume surged by 14.56%, pointing towards increased participation from traders and investors compared to previous days.