Solana (SOL) Price Fall Today: Whale Signals $45.7M Sell

Bittime - Solana (SOL) price has been on a steep decline, dropping nearly 11% in the last seven days after failing to break the $220 resistance level. Following the rejection, SOL dropped below the critical $200 threshold, reflecting the increasing bearish momentum.

Nonetheless, whale activity showed signs of renewed accumulation, with large holders continuing to increase their positions over the past five days. These developments indicate a potential price rebound, although SOL's short-term outlook remains under bearish pressure.

The number of addresses owning at least 10,000 SOL decreased sharply from 5,096 to 5,025 between December 28 and January 2, reflecting a significant sell-off among large holders.

When whales reduce their holdings, it can indicate a lack of confidence or profit-taking, leading to increased selling pressure and potential price declines.

However, the number of whale addresses has started to recover, increasing from 5,025 on January 2 to 5,098 on January 8. This rebound indicates renewed accumulation by large investors, which could be a positive sign for Solana price stability or recovery in the near future.

Also read: Solana (SOL) vs Ethereum (ETH): Which is Better? Check This Out

Technical Analysis and ADX Indicator

Although SOL is in a downtrend and lost 14% over the past two days, the whales' increased activity could signal improving sentiment and possible foundations for a price reversal if the trend continues.

SOL DMI. Source: TradingView

The Average Directional Index (ADX) for SOL is currently at 42.6, up from 37 one day ago, indicating a strengthening trend. This rise in ADX confirms that SOL's current downtrend is getting stronger, suggesting that bearish momentum dominates the market.

Further supporting this, the directional indicators show that the +DI, which represents buying pressure, has dropped significantly to 10.1 from 31.5 over the past three days.

In contrast, the -DI, which tracks selling pressure, has surged to 33.1 from 8.6 over the same period, indicating a substantial increase in downward momentum. This shift reinforces the current downtrend and suggests that Solana prices could face continued selling pressure.

Support and Resistance Levels

Solana's EMA lines show a bearish outlook, with the short-term EMA crossing below all long-term lines one day ago. This death cross is a significant bearish signal, coinciding with the sharp price drop from $200.

SOL Price Analysis. Source: TradingView

If the current downtrend continues, SOL prices could test the critical support level of $185. Failure to hold this level could lead to further declines, with $176 as the next key target.

However, recent whale activity provides a glimmer of optimism, as large shareholders have continued to accumulate SOL over the past few days. If the bullish momentum returns, SOL prices could challenge the resistance at $197.

A break above this level could pave the way for an increase towards $211, which represents a potential 12.8% recovery from current levels.

Read also: Solana Price Plummets: Will it Bounce Back or Continue to Fall?

Whale Activity and Market Sentiment

On January 10, 2024, blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a crypto whale transferred a significant 246,064 SOL, worth $45.76 million, to Binance.

This data from Whale Alert indicates a potential sell-off and reflects investor sentiment, as they seem unwilling to go long or hold positions due to the continuous price decline over the past three days.

After a significant price drop over the past three days, SOL has reached a crucial support level at $178, which is aligned with the 200 Exponential Moving Average (EMA) on the daily time frame. This level seems to be the decisive situation for SOL in the coming days.

If SOL breaks this support level and closes the daily candle below the $175 mark, it could potentially drop 11% to reach $156, or even lower if the bearish sentiment continues.

Currently, SOL is trading near $182, having experienced a price drop of over 7.95% in the last 24 hours. During the same period, its trading volume fell by 26%, indicating lower participation from traders and investors compared to the previous day.

Given all these factors, investors should remain vigilant and monitor SOL price movements amid heightened whale activity.

FAQ

Why has Solana (SOL) price fallen sharply recently?

Solana (SOL) price fell sharply as whales sold $45.7 million in coins, creating selling pressure in the market. In addition, SOL failed to break the $220 resistance level and dropped below the critical $200 threshold, reflecting the increasing bearish momentum.

What is a “death cross” in Solana's technical analysis?

A “death cross” is a bearish signal that occurs when the short-term moving average line crosses below the long-term moving average line. This indicates that the downtrend is getting stronger and may indicate the potential for further price declines.

What is happening with Solana whale activity right now?

Solana whale activity is showing signs of renewed accumulation, with the number of addresses that have at least 10,000 SOL increasing. Despite large sales, the increase in the number of whale addresses could be a positive sign for future Solana price stability or recovery.

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References

coinpedia.org, Solana (SOL) Price Falls Below $190 Despite Whale Accumulation, accessed on January 10, 2025.

coinpedia.org, Crypto Whale Dumps $45.7 Million Worth of Solana (SOL), Sell-Off Signal?, accessed on January 9, 2025.

Author: AWW