Solana at Risk of Plunging to $109! What Are Whales Planning for SOL?

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Solana at Risk of Plunging to $109! What Are Whales Planning for SOL?

altcoin Cryptocurrency Memecoin price Solana

As the price of Solana (SOL) continues its downward trajectory, large holders, or “whales,” are moving significant amounts of the cryptocurrency, raising concerns about the potential for widespread selling.

Recently, a whale transferred approximately 846,613 SOL to an anonymous wallet in a single transaction. With SOL trading at around $140, the value of this transfer is estimated to be nearly $118.5 million, which has significantly increased the daily trading volume of the cryptocurrency.

Solana at Risk of Plunging to $109

Market data indicates that Solana’s price has dropped by more than 13% in less than 24 hours, falling to $138.5. Since reaching its peak of $294 at the beginning of the year, the cryptocurrency has lost nearly 52% of its value. This recent decline has caused Solana’s price to fall below its 50-day and 200-day moving averages, putting it on the brink of forming a bearish “death cross” pattern.

The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators also paint a discouraging picture for Solana (SOL), with predictions suggesting that SOL’s price could drop to $109.

In recent weeks, network fees on Solana and activities related to meme coins have decreased, and the number of active users on the network has reached its lowest point in the past five months.

However, some analysts remain hopeful that the approval of a spot Solana ETF by the U.S. Securities and Exchange Commission (SEC) could reverse this downward trend and attract investors back to the cryptocurrency’s market.

Market Sentiment and Potential Catalysts

The current market sentiment surrounding Solana is largely driven by the bearish technical indicators and the large transactions being made by whales. The fear is that these large holders could be preparing to sell their holdings, which would further drive down the price of SOL.

On the other hand, the potential approval of a Solana ETF could serve as a significant catalyst for the cryptocurrency. An ETF would provide institutional and retail investors with an easier and more regulated way to gain exposure to Solana, potentially leading to increased demand and a price recovery.

Analyst Opinions and Long-term Outlook

While the short-term outlook for Solana appears bleak, some analysts believe that the current situation could present a buying opportunity for long-term investors. They argue that the recent price decline, coupled with the potential for an ETF approval, could set the stage for a future rally.

Moreover, Solana’s strong fundamentals, including its high-speed blockchain and growing ecosystem of decentralized applications (dApps), continue to make it an attractive option for investors looking for promising blockchain projects.

In conclusion, while the immediate future of Solana is uncertain, the potential for an ETF approval and the cryptocurrency’s underlying technology keep the door open for future growth. Investors will be closely watching the SEC’s decision and any further developments in the market that could influence Solana’s price.

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