Solana (SOL), ranked as the world’s fifth-largest cryptocurrency based on market capitalization, is displaying signs of vulnerability amidst ongoing market uncertainties.
Large-scale Sale of $45.7 Million in SOL Tokens by a Major Investor
During this period of market downturn, Whale Alert, a platform tracking blockchain transactions, revealed on social media that a sizable 246,064 SOL tokens, valued at $45.76 million, were offloaded by a significant crypto investor to the Binance exchange.
The identity of this whale’s wallet remains undisclosed, causing unease among market participants who fear a potential wave of sell-offs.
Moreover, this substantial sell-off on Binance coincided with SOL’s price hitting a critical support level of $176 along with the 200-day Exponential Moving Average (EMA).
Analyzing Solana’s Technical Standing and Key Thresholds
This pivotal support level serves as a decisive juncture for SOL. Expert technical analysis suggests that breaching the 200 EMA and closing a daily trading session below the $174.5 mark could trigger an anticipated 11% decline, possibly leading to a future price level around $156.
Conversely, a successful retention above the 200 EMA could pave the way for upward momentum, targeting the $220 threshold once more.
Assessment of On-chain Data and Sentiment
Ongoing evaluations of SOL’s market sentiment and technical indicators signal that investors and long-term holders are actively transferring their assets to exchanges, as per insights from the on-chain analytics provider Coinglass.
Spot Inflow/Outflow data reveals a continuous outflow of more than $61 million worth of SOL within the past 24 hours from various exchanges.
Such outflows often hint towards impending sell-offs, introducing selling pressure that could potentially drive the altcoin’s price even lower.
Highlighted Liquidation Levels Worth Noting
Presently, crucial liquidation points are marked at $182.1 (lower threshold) and $193.2 (upper threshold), indicating that intraday traders have built up significant leverage at these levels, according to data from Coinglass.
If sentiment remains unchanged and SOL’s price approaches $182.1, long positions worth approximately $111.61 million might face liquidation.
Contrarily, a price surge towards $193.2 could result in the liquidation of short positions worth around $14.19 million.
Considering these on-chain metrics, it seems that traders holding long positions currently hold a stronger stance compared to their short-selling counterparts.
At the latest update, SOL was priced at nearly $192, exhibiting a modest 24-hour increase of 1.10%. However, during the same timeframe, trading volume dipped by 5.5%, indicating reduced engagement by traders and investors compared to the previous day.