The recent decline in the price of SOL, the native token of the Solana blockchain, has sparked considerable attention among crypto enthusiasts. Coinmarketcap data shows that SOL has experienced a significant drop of over 20% in the last 24 hours, with the token currently trading near $137.
One of the key developments that has caught the eye of the crypto community is a whale who recently unstaked 79,530 SOL tokens worth $10.39 million. This whale had been holding SOL since it was trading at $43 and had previously withdrawn nearly 200,000 SOL tokens worth $8 million from Binance to stake them. However, in light of the recent price decline, the whale appears to be taking profits and reducing their exposure to SOL.
The decision to unstake SOL comes in the wake of the Crypto Strategic Reserve announcement, where pro-crypto U.S. President Donald Trump mentioned SOL as part of the reserve. With the current market sentiment and the actions of whales like this one, it seems that some large holders may be moving away from Solana.
Furthermore, another crypto trader has placed a bearish bet on SOL by depositing 2 million USDC to long the token. This trader has set limit orders between $100 and $131.82 to accumulate more tokens, indicating a belief that SOL could drop to the $100 level in the near future.
On the technical analysis front, SOL is currently hovering around a crucial support level near $130. This level has historically served as a strong price reversal zone with significant buying pressure. If SOL manages to hold this level, there is a strong possibility that the token could see a 30% surge to reach $137 in the coming days.
Despite the short-term struggles, long-term investors and holders have been accumulating SOL, as indicated by data from on-chain analytics firm Coinglass. Exchanges have witnessed an outflow of over $180 million worth of SOL tokens in the past 48 hours, suggesting that there is strong demand for the token.
In conclusion, while SOL may be facing short-term challenges, the overall outlook for the token remains bullish in the long term. With market uncertainty prevailing, investors are closely monitoring the price action of SOL and positioning themselves for potential future gains.