What factors are affecting Solana's price consolidation?

Solana (SOL) is experiencing a price consolidation phase, significantly influenced by whale activity. According to Lookonchain, large holders have been depositing significant amounts of SOL into exchanges, including $17.45 million deposited by CMJiHu into Kraken and $15.98 million deposited by 5PjMxa into Kraken. These changes suggest potential profit-taking, which has pushed down Solana's price. The current price is $175.90, and the market is nervously waiting for a breakout of the negative trend.

Descending triangle and descending wedge patterns provide breakout potential

Traders are closely watching the descending triangle pattern on the 1-hour chart of SOL against Tether (USDT) on the Binance platform. As noted by Satoshi Flipper on X, this pattern usually indicates consolidation, with highs declining and lows stabilizing. SOL is currently approaching the lower boundary of the triangle, suggesting a possible breakout. If the resistance level is broken, the price may rise.

The role of liquidation risk and key Fibonacci levels

Additionally, the analysis of the SOL liquidation heatmap by 5.0 INVERTED.Bear emphasizes the large-scale liquidation risk based on traders' leverage positions. The heatmap shows the key price levels where liquidations are most likely to occur, indicating areas of increased market volatility.

According to More Crypto Online, Solana's price is also attempting to reach the 50% Fibonacci retracement level. A drop to support and further decline could lead to a price drop below $170. Resistance levels are at $195 and $200, and if the price stays above these levels, a rebound is possible.

Key points

  • Whale activity: Large deposits from major holders indicate potential profit-taking.

  • Technical patterns: Descending triangle and descending wedge patterns suggest a possible breakout scenario.

  • Fibonacci levels: The key support level at $170 and the resistance level at $195 are crucial for price direction.

Conclusion

In summary, Solana's current price consolidation is largely influenced by whale activity and technical patterns. As the market focuses on key support and resistance levels, potential breakouts could trigger significant price fluctuations. Traders should closely monitor developments.

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