Solana (SOL) is showing signs of recovery after a dramatic 57% decline from its yearly peak. The cryptocurrency rebounded to $145 following significant whale accumulation, with key resistance levels now in focus.
Whales Drive Solana’s Price Stabilization
Solana’s price recently plunged to a multi-month low of $126.15 before rebounding briefly to $145. This sharp decline came after the token fell from its yearly high of $295. The drop also resulted in a breakdown below the crucial $170 support level, raising concerns among investors.
However, a major Solana whale stepped in, purchasing $14 million worth of SOL and withdrawing it from Binance for staking. This accumulation helped reduce selling pressure, stabilizing SOL’s price despite the looming $1.75 billion token unlock. Historically, such unlock events introduce additional supply, which can lead to price drops. However, the whale activity suggests a strong belief in Solana’s long-term potential.
Key Resistance Levels and Bullish Momentum
Despite its recent recovery, Solana is still facing resistance at $170. If the current bullish momentum persists, a breakout above this level could push SOL toward the $180 mark. Market analysts suggest that breaking this resistance zone could reignite a broader rally for Solana.
Additionally, Solana’s technical indicators point to strengthening bullish momentum. The Parabolic SAR (Stop and Reverse) indicator has flipped below the price action, signaling a potential trend reversal. Similarly, the MACD (Moving Average Convergence Divergence) indicator shows a bullish crossover, with expanding histogram bars confirming buying pressure.
CME Group’s Solana Futures and ETF Prospects
In a significant development, CME Group announced plans to launch Solana futures on March 17, pending regulatory approval. This move positions Solana alongside Bitcoin and Ethereum as one of the few cryptocurrencies with futures trading on a major exchange. Analysts believe this could strengthen the case for a future Solana ETF, further boosting institutional interest in SOL.
TVL Decline and Market Impact
Despite the price rebound, Solana’s total value locked (TVL) in DeFi has dropped from $12.19 billion to $7.39 billion.
Despite the price rebound, Solana’s total value locked (TVL) in DeFi has dropped from $12.19 billion to $6.94 billion.
With whale accumulation, strengthening technical indicators, and upcoming CME futures, Solana appears poised for a potential rally. If SOL breaks past the $170 resistance, a surge toward $180 could be imminent. Investors will be watching closely to see if this momentum sustains, signaling a broader recovery for Solana.
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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