Solana [SOL], the world’s fifth-largest cryptocurrency, is back in the spotlight as major players, or “whales,” have amassed a substantial amount of SOL tokens, signaling increased confidence in the asset’s long-term potential. This surge of whale activity comes at a critical moment as SOL approaches a key resistance level of $195, with bullish technical indicators suggesting a potential breakout.
Whale Activity In Solana – $35 Million In Accumulations
On October 28, Lookonchain, a blockchain transaction tracker, reported that three prominent whales collectively accumulated around 202,400 SOL, valued at approximately $35 million. These acquisitions were made through wallet addresses on major exchanges like Binance and Kraken, underscoring the confidence of large investors in SOL’s upward momentum. Notably, these whales also staked their SOL tokens, further solidifying their intent to hold long-term positions in Solana.
The most active wallet, “AA21BS,” withdrew 153,511 SOL, amounting to $26.4 million. Other major accumulations were recorded by “EHax” with 35,498 SOL ($6.12 million) and “EGzi” with 13,000.8 SOL ($2.3 million). By staking their purchases, these whale investors have signaled a positive outlook for SOL, indicating a belief in further price growth.
Technical Analysis: Solana Approaches Crucial Breakout Levels
Technical analysis reveals that SOL’s recent price action is aligned with a bullish inverted head-and-shoulders pattern, indicating a positive trend. This pattern has bolstered confidence that SOL will continue to climb, with a resistance level at $195 within reach. If Solana sustains this momentum, there’s potential for the asset to reclaim its all-time high of $260 in the coming weeks.
Adding to this bullish sentiment, SOL’s 200-day Exponential Moving Average (EMA) is also indicating an uptrend, further reinforcing positive investor sentiment and suggesting that the asset’s price may continue to increase if current conditions persist.
Despite the bullish outlook, SOL’s on-chain metrics present a mixed view. According to Coinglass, Solana’s Long/Short ratio currently sits at 1.03, indicating a predominantly bullish sentiment among traders. However, open interest for SOL has decreased by 7%, suggesting the possibility of short position liquidations.
This drop in open interest is noteworthy, as it suggests that some traders may be closing out short positions in response to the rally. Furthermore, two critical price levels could influence SOL’s short-term price trajectory. If SOL reaches $178, approximately $16.7 million worth of short positions may be liquidated, potentially driving the price higher. Conversely, a decline to $172.9 could trigger the liquidation of around $36 million in long positions, possibly pushing prices down.
At the time of writing, SOL is trading at around $176.33, marking a 1.2% increase over the past 24 hours. During this same period, SOL’s trading volume surged by 30%, reflecting heightened interest from traders and investors.
Also Read: Crypto Market Braces For $1.5B Token Unlock – Celestia, Solana & More To Release Millions In Supply
The Road Ahead for SOL
The recent activity from whales, coupled with SOL’s technical indicators, suggests that Solana is gearing up for a critical moment. If bullish sentiment persists, SOL could break past the $195 mark, potentially setting the stage for a run at its previous all-time high of $260. However, market participants should watch for possible fluctuations around $172.9 and $178, as liquidation triggers at these levels could influence price volatility.
With whales heavily invested, SOL’s trajectory in the coming days will be crucial. As large holders stake their assets, the broader market may interpret this as a sign of confidence in Solana’s long-term prospects, potentially fueling further investment and solidifying SOL’s position as one of the top assets in the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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