Whale Makes Big Moves on Solana (SOL) — Is Trend Reversal on Horizon?

Crypto data tracker Whale Alert detects major whale transfers for the seventh largest cryptocurrency by market cap, Solana (SOL).

In the last 24 hours, over 2.1 million Solana coins were moved in three transactions. First, 899,999 SOL worth $50,456,212 were transferred between unknown wallets. In another move, 900,000 SOL valued at $50,465,194 were transferred between unknown wallets. Then an unknown whale transferred 336,999 SOL worth $19,100,615 to the Coinbase crypto exchange.

The exact reasons for the token shifts remain unknown, but it is possible to draw inferences from the destination to which they are being shifted.

The first two transactions, which entail moving to unknown wallets, may reflect those of an OTC, which occurs outside of a crypto exchange.

The most recent transaction that suggested a shift to a cryptocurrency exchange, notably Coinbase, may have suggested selling, which is one of the reasons tokens are moved to exchanges.

Is reversal on horizon?

After soaring roughly 450% year to date, Solana is facing a price pullback. SOL was down 4.75% in the last 24 hours to $55 at the time of writing, down 19% from recent highs of $68.18.

The 24-hour drop matches similar movements in the crypto market, with major coins Bitcoin (BTC) and Ethereum (ETH) down 1.47% and 2.46%, respectively, in this span.

Solana’s attempt to break past the $69 level was rebuffed by the bears. If this level is successfully breached, Solana might aim for new yearly highs targeting $75 next.

In contrast to this notion, if the price falls from its current level, the bears will attempt to break through the strong support at $51, from where the SOL price has rallied twice in recent weeks. If they succeed,  Solana may fall to $48, where buyers are likely to enter.

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Tomiwabold Olajide