Whales Purchase $23.86 Million Worth of Solana: Could SOL Reach $400?

Whales buy Solana worth $23.86M: Is $400 in sight for SOL?

Solana [SOL] managed to maintain its position above the $230 support level, registering a 2.01% increase in the last 24 hours amidst heightened market volatility triggered by Bitcoin reaching a record high of $99,000.

During this period, Solana’s trading volume spiked by 9.41%, totaling $7.31 billion. With market analysts expecting further bullish momentum in the upcoming month dubbed ‘Pumpcember’, the question arises: Can Solana reach the coveted $400 mark?

Continued Involvement of Solana Major Investors

According to Lookonchain, a platform specializing in blockchain analytics, a significant investor recently acquired 100,000 SOL worth $23.86 million and staked it within the past 48 hours.

Analysis of the investor’s transactions reveals a deliberate accumulation and staking strategy for Solana tokens aimed at optimizing rewards.

The investor’s holdings have now reached 231,919 SOL, equivalent to $55.58 million, underscoring their strong belief in Solana’s future prospects.

Data indicates that these transactions were predominantly initiated from accounts on the Binance platform and subsequently moved to the investor’s staking wallet.

Notably, the most recent transfer involving 50,000 SOL, valued at $11.8 million, was finalized just a few hours ago as of the time of reporting.

All-Time High Influx of $310M in Stablecoins to Solana

Solana has witnessed an unprecedented influx of stablecoins, totaling $310 million within the last day, marking the largest single-day inflow in its history.

This surge has propelled Solana’s total stablecoin market cap to $4.481 billion, reflecting an impressive 15.67% surge over the past week.

USDC remains the dominant stablecoin on the Solana network, accounting for 72.07% of the market share.

This substantial inflow underscores the increasing confidence in Solana’s ecosystem, possibly driven by rising adoption rates and the network’s robust technological framework.

SOL Records Over +300% DEX Volume Compared to ETH

Solana has surpassed Ethereum Layer-1 in Decentralized Exchange (DEX) trading volume for the third consecutive day, observing nearly 300% more trading activity.

The graphical representation illustrates a notable surge in transaction volume on Solana, consistently surpassing other networks in DEX trading activity.

This continued dominance signifies the wide-scale adoption of Solana’s ecosystem, supported by its rapid transaction speeds, minimal fees, and enhanced liquidity.

The substantial uptick in DEX trading volume highlights Solana’s escalating prominence within the realm of decentralized finance (DeFi), further solidifying its competitive edge over Ethereum Layer-1.

Potential $270 Target Following SOL’s 4-Hour Breakout

At the time of writing, Solana was trading at $242.79, charting a consistent upward trajectory, with crucial support at $234 and significant resistance at $250.

Recent price action showcased a break from consolidation, surging over 10% before stabilizing. An effective breach above $250 could drive prices towards the subsequent resistance level at $270, extending the prior breakout.

The MACD indicator signaled a bearish crossover, as the MACD line dipped below the signal line, hinting at potential short-term retracement or reduced momentum.

Nevertheless, the contracting histogram implied diminishing bearish influence, providing room for a possible bullish reversal.

Additionally, the Chaikin Money Flow (CMF) remained positive at 0.10, indicative of sustained capital inflows and continued buying interest in the market.

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