It seems that significant investors are back in the game as Solana [SOL], the cryptocurrency ranked fifth in terms of market capitalization, nears the critical threshold of $195.
Big Buyers Acquire $35 Million Worth of Solana
On October 28, the blockchain-based transaction tracking platform Lookonchain shared on X (formerly known as Twitter) that major investors accumulated a substantial 202,400 SOL, valued at $35 million, in the past week.
Moreover, these large buyers have staked the SOL tokens they acquired, indicating positive sentiment among traders towards SOL as a long-term investment. Notably, this significant acquisition of SOL was carried out by just three major investors.
Lookonchain highlighted that the wallet address from a large investor named “AA21BS” withdrew a total of 153,511 SOL, equivalent to $26.4 million. Another wallet address, “EHax,” withdrew 35,498 SOL worth $6.12 million, while the third investor’s wallet address “EGzi” withdrew 13,000.8 SOL worth $2.3 million.
However, these substantial withdrawals were processed through the Binance and Kraken cryptocurrency exchanges.
Solana Technical Analysis and Key Thresholds
Following the retest of a bullish inverted head and shoulders pattern, a positive trend is observed for SOL holders, as indicated by the significant accumulations.
According to CryptoCrypto’s technical analysis, SOL appears to be on an upward trajectory and is edging closer to a crucial resistance level at $195. Based on recent market movements, there is a strong likelihood that SOL could hit the $195 mark in the upcoming days.
Moreover, the recent notable acquisitions of SOL tokens and the prevailing market sentiment suggest that SOL holds the potential to achieve its all-time high of $260 in the near future. Presently, the 200 Exponential Moving Average (EMA) signals an upward trend.
Mixed On-chain Metrics
Despite the optimistic outlook, on-chain metrics related to SOL reveal a somewhat mixed sentiment. According to the on-chain analytics provider Coinglass, the Long/Short ratio for SOL currently stands at 1.03, indicating a bullish sentiment among traders.
However, there has been a 7% drop in open interest, suggesting a probable liquidation of short positions amid the recent market rally.
At present, the primary resistance levels are identified at $172.9 on the lower end and $178 on the higher end, with traders exhibiting significant leverage at these levels, as per the data from Coinglass.
If the market sentiment remains steady and the price rises to $178, around $16.70 million worth of short positions could be liquidated. Conversely, in case of a shift in sentiment leading to a drop in price to $172.9, approximately $36.06 million worth of long positions may face liquidation.
The liquidation data implies that the bulls are currently in control of the market, given that long positions outnumber short positions by twofold.
As of the latest update, SOL was exchanging hands near $176.33, registering a modest price increase of 1.2% over the past 24 hours. Concurrently, the trading volume surged by 30% during the same duration, indicating heightened engagement from traders and investors amidst the major investors’ activity.