Solana [SOL] began to pull back after rising above $168, indicating a potentially healthy adjustment phase.
Naturally, whale activity and on-chain signals have raised questions: Is this drop a precursor to a stronger rally in the future?
Whale and institutional participation is on the rise
On June 12, the whale tracker Onchain Lens noted that two newly created crypto wallets withdrew $219.99 million worth of 1,348,741 SOL from Coinbase Prime.
Such a massive outflow of altcoins is often associated with whales or institutions, which seems to be a bullish signal for the asset.
However, whales are using all their SOL for staking, indicating a long-term confidence in Solana. This is a bullish signal, further suggesting potential buying opportunities.
In addition to this large transaction, investors and long-term holders are accumulating tokens as prices seem to be heading for a correction.
SOL outflow valued at $21.82 million
According to CoinGlass's spot inflow/outflow indicator, exchanges in the cryptocurrency space recorded an outflow of SOL tokens worth $21.82 million in the past 24 hours.
A significant outflow of exchange tokens indicates potential accumulation, which may lead to buying pressure and further upward rebounds.
However, despite the bullish backdrop, the price temporarily fell by 4% to $159.60, in line with the overall correction trend.
The Solana bull market is loud, but is it too early?
Given the current market sentiment, traders are increasingly betting on bullish outcomes. As of the time of writing, Binance's long-short account ratio reached 2.40, with 70.61% of traders holding long positions.
This is a strong tilt, indicating that despite the market correction, leveraged traders continue to bet on the upside. Furthermore, short positions only account for 29.39%, suggesting that shorts are still reluctant to enter on a large scale.
Combining these indicators, it seems that bulls are currently dominating the altcoin and helping to maintain SOL's upward trend.
Solana: Price Trends and Key Levels
According to AMBCrypto's chart analysis, SOL appears to be in an upward trend, although it is currently undergoing a market adjustment.
The daily chart shows that this altcoin recently surged over 15% to the $168 level, but is currently retesting the local support area around $157.80.
If buyers hold the $157 level, there is still a possibility of pushing the price up to $184 again (approximately a 16% increase). However, if sellers take control and the price falls below $156, the downside targets include $148 and $142.
