Solana: Analyzing the Impact of a $45.7 Million SOL Whale Sell
If Solana falls below the $175 mark, it could drop by 11% to $156 levels.
Traders are over-leveraged with a low end of $182.1 and a high end of $193.2.
Solana [SOL], the world’s fifth-largest cryptocurrency by market capitalization, appears to be losing value amid ongoing market uncertainty.
Whales Sell $45.7 Million Worth of SOL
Amid the market downturn, blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a cryptocurrency tycoon dumped 246,064 SOL worth $45.76 million to Binance.
As of now, the wallet address of this whale remains unknown, which has raised investors' concerns about a potential sell-off.
Moreover, there was a significant drop on Binance when the SOL price reached the critical horizontal support of $176 and the 200-day exponential moving average (EMA).
Solana Technical Analysis and Key Levels
This key support level is crucial for SOL. Expert technical analysis shows that if the altcoin breaks the 200 EMA and closes the daily chart below $174.5, there is a high chance of an 11% drop.
A move to the $156 level is possible in the future.
Conversely, if SOL manages to stay above the 200 EMA, it might again show upward momentum towards the $220 mark.
On-chain metrics are mixed
According to on-chain analysis company Coinglass, by analyzing SOL’s market sentiment and technical outlook, investors and long-term holders appear to be selling their holdings to exchanges.
Data from the spot inflow/outflow indicator shows that SOL outflows from exchanges exceeded $61 million in the past 24 hours.
Outflows in this case indicate a potential sell signal and have the potential to create selling pressure, leading to further declines in altcoin prices.
Main clearing areas
As of now, the main liquidation levels are located at $182.1 below and $193.2 above, with day traders being overleveraged at these levels, according to Coinglass.
If the sentiment remains the same and the price reaches the $182.1 level, long positions worth nearly $111.61 million will be liquidated.
Conversely, if sentiment shifts and the price rises to the $193.2 level, approximately $14.19 million worth of short positions will be liquidated.
Combining these on-chain indicators, it appears that traders holding long positions may be stronger than short sellers.
At press time, SOL is trading near $192, with a slight price increase of 1.10% over the past 24 hours.
However, its trading volume fell by 5.5% during the same period, indicating that traders and investors were less engaged compared to the previous day.
