A cryptocurrency whale unstaked 120,197 SOL and transferred it to Binance, creating a clear bearish signal.
Solana may only surge significantly if it breaks out of the accumulation phase and closes daily candles above 154 USD.
Amid increased volatility in the cryptocurrency market, Solana [SOL] has avoided deeper declines by holding above the support level of 143.5 USD, thanks to Bitcoin [BTC].
On May 6, when most cryptocurrencies were declining, SOL temporarily fell below this important support level.
Market sentiment & current price momentum
However, a quick 3% price surge of BTC pushed the market into the green zone, allowing SOL to recover quickly.
At the time of writing, SOL has risen by 2.75%, trading around 147.5 USD after reaching an intraday high of 149.5 USD. Of course, this quick recovery has attracted attention, with trading volume increasing by 40% in the last 24 hours.
Cryptocurrency whales unstaked 17.55 million USD in SOL, when will they sell?
Current market sentiment and volatility seem to have awakened a Solana whale.
According to Onchain Lens, a whale unstaked 120,197 SOL worth 17.55 million USD and sent this amount to Binance.
Source: X
A significant amount of SOL was unstaked after being locked for six months. During the same period, the whale earned a reward of 3,802 SOL but still suffered a loss of 7.8 million USD.
Clearly, large-scale unstaking, especially when moving to Binance, often signals an intention to sell. This could create short-term selling pressure and slow down SOL's upward momentum.
Price action of Solana and the next levels
According to TinTucBitcoin's technical analysis, SOL seems to be accumulating in a narrow range between 143.5 USD and 154 USD over the past two weeks, after surpassing the important resistance level of 143 USD.
Source: TradingView
This indicates that price action oscillating after a breakout is often a positive sign. This usually indicates strength when the asset takes a breather before the next move.
If SOL surpasses 154 USD, a 15% rally could occur, pushing the price towards the 180 USD level.
On the other hand, if the price drops below 143.5 USD, it could trigger a decline to 132 USD in the short term.
Considering the recent volatility of the asset's price, a prominent cryptocurrency expert noted on X (formerly Twitter) that 120 USD is the strongest historical support zone for SOL.
This area has continuously initiated price reversals during market downturns. Of course, if the price goes down again, 120 USD could provide a significant 'buy the dip' opportunity.
Source: https://tintucbitcoin.com/solana-tac-dong-chuyen-nhuong-1755-trieu-usd-den-gia-sol/
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