A significant Solana (SOL) whale has been making waves in the market, offloading a substantial amount of tokens. On August 20, 2024, the mysterious investor dumped 20,000 SOL, worth approximately $2.9 million, across cryptocurrency exchanges OKX and Binance. This large-scale transaction occurred during the opening of the US stock market, raising eyebrows among market participants.
The whale’s activity adds to a pattern of selling. Since January 15, 2024, this particular investor has unloaded over 614,000 SOL, totaling a staggering $89 million. While this substantial selling pressure might be expected to significantly impact the SOL price, the market has shown resilience so far.
SOL has experienced a mixed day, with an initial surge to $148.6 during Asian trading hours followed by a decline to around $142.7 at press time, representing a 1% drop. The overall cryptocurrency market has faced headwinds due to a new all-time high in gold prices, which often impacts the performance of digital assets.
Despite the price decline, SOL’s trading volume has increased by over 16% in the past 24 hours, indicating heightened trader interest. However, the open interest, a measure of outstanding derivatives contracts, has dropped by 1.5%, suggesting a potential cooling of speculative activity.
Technically, SOL is currently hovering near the critical support level of $140 and is also finding support from the 200-day Exponential Moving Average (EMA). Maintaining this level is crucial for preventing a deeper correction. If SOL breaks below the 200 EMA, the price could potentially plummet to $130 or lower.
The whale’s actions, coupled with the broader market dynamics, create a complex scenario for SOL. While the cryptocurrency has shown resilience so far, the potential for further price declines cannot be ruled out. Investors should closely monitor market developments and technical indicators to make informed decisions.
Also Read: Solana Investors On Edge As VanEck Battles For ETF Approval
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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