Following a period of decline, Solana [SOL] has seen a significant upward trend in the last month. Currently, the altcoin has surged past the $200 threshold for the first time since April.
Presently, Solana is trading at $207, signaling a notable 27.05% surge in the past week and a remarkable 41.12% increase on a monthly basis.
The recent surge in Solana’s value has sparked discussions regarding the factors that are fueling this growth. According to Lookonchain, one of the key drivers of this recent uptrend is the increased activity by large investors known as whales.
Accumulation of Solana by Whales
Lookonchain reports that whales have been actively accumulating SOL, with one notable whale amassing 257599 tokens valued at $54 million since October 22nd.
Furthermore, within the last 24 hours, this whale has acquired an additional 7500 tokens equivalent to $1.57 million.
Typically, heightened accumulation by whales signifies the confidence of market participants in the future value of a cryptocurrency.
Potential Effects on SOL’s Performance
As per the analysis by CryptoCrypto, Solana is currently benefiting from positive market conditions.
This is evident as Solana’s Relative Vigor Index (RVGI) line (in green) is above its signal line.
This situation acts as a signal to buy, creating opportunities for new market participants to enter, particularly those taking long positions. A rising RVGI indicates a bullish momentum with an increase in buying pressure.
This trend of heightened buying activities is further substantiated by a rising On-Balance Volume (OBV) which surged from $64.8 million to $71.6 million.
When OBV increases, it suggests a higher level of buyer activity, often leading to upward price movements. It indicates that the trading volume supports the price rise, indicating strong purchasing interest.