The cryptocurrency market has been under significant pressure recently, and Solana (SOL) felt the effects with its price dropping to a month-low. However, signs of recovery are emerging as Solana was among the first cryptos to rebound from the dip, catching the attention of investors. This surge in interest is particularly noteworthy, as whale activity has been on the rise, signaling confidence in Solana’s potential.
Whale Activity Fuels Solana’s Recovery
According to Coinshare data, whale activity has been notably high for several days now, with Solana inflows reaching $1.7 million last week. This surge in whale interest highlights a shift in investor sentiment, with many looking to “buy the dip.” This trend continued this week as trading volume for Solana remained elevated, with whales positioning themselves ahead of what many expect to be a market rally in mid-2025.
Solana’s price recently plummeted by 29% during the market crash, hitting a month-low of $177.21. However, analysts view this drop as a “retest” rather than a major downturn. The crypto’s price had reached an all-time high (ATH) of $263.83 in November, keeping investor optimism intact for the upcoming rally.
SOL Price Up 9% Today: Retest Begins
November was a landmark month for Solana, as the network saw a surge in adoption, reaching 53% of global crypto users according to Glassnode. While the recent price dip raised concerns, analysts view it as part of a healthy market correction. Today, Solana’s price has surged by 9%, climbing to $195.73, with a market capitalization of $93.8 billion.
This rebound signals the beginning of a potential recovery, as whale involvement increases and buying pressure builds. Technical analysis suggests that Solana is nearing an important breakout, with the price testing key support levels. As the 4-hour oscillator starts curling upwards, analysts anticipate a move toward the next resistance point, which could indicate sustained bullish momentum.
Solana’s Technical Outlook
Solana’s charts show a rebound from the 200-day simple moving average (SMA), which offers a potential opportunity for the price to climb above the volume-weighted average price (VWAP) anchored from September’s low. Analysts are optimistic that this could be the start of a more substantial rally, with the next resistance point at the 5-day SMA.
Despite warnings of potential Bitcoin crashes, altcoins like Solana are expected to maintain their bullish momentum. As the Bitcoin market consolidates, Solana and other altcoins could experience significant rallies in the coming months, potentially surging 5x-10x during the altcoin season expected around April-May 2025. The current price movement suggests that Solana’s recovery is just beginning, with much more to come as the market shifts in its favor.
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.
Also Read: Crypto Market Chaos: Solana Slides Below $200 Amid $250 Billion Wipeout – What’s Next?
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